Jeez these people are dumb. If Apple does make an entry level phone, it won't have a bigger screen than the top of the line flagship model. If they do make one, I see it having the same size as the 4 and earlier, without retina. IF!!
The issue is not Apple's profits, which are doing quite well. The long term issue is the market size for each ecosystem. If Android eventually takes the vast majority of the market, that will effect Apple in many ways, all of them bad. They cannot just sit on their laurels and hope for the best (not that I think they are).
You were saying the same thing about the ipad mini for years. Face it, Tim Cook's Apple is not SJ's Apple. We're gonna see new things SJ likely would not have done.More options is not a bad thing. Apple has always had multiple options on the Mac side. Makes sense the iOS side will catch up.
For the umpteenth time, two times per year refreshes make little to no sense for iPhones that are stuck on two year contracts. Not enough people to buy both models.
I think Apple does need to go back to splitting up the release times for its products. It keeps interest year round and allows people time to save up for each different item.
Valid arguments can be made for both sides of the low cost and screen size debates. Apple will decide which they like better, however...
Until Cook proves he has what it takes to keep Apple at the top of the innovation ladder these fears will remain. It's only natural. The "news media" needing crap to print keep making it worse and playing off these fears.