Originally Posted by KDarling
So at least 39% of all smartphones sold in the UK that quarter were 4" or larger. (No doubt there are more that did not make the top ten, such as the Note).
Is that a majority? No way. Still, is that many sales a good enough submarket for Apple to go after? That's the question.
The important comparison is really 4.5" or above vs everything else. It looks like 15% above vs 45% below in the figures you posted and the rest unknown as it's split between so many manufacturers. Given that all Android manufacturers besides Samsung are only making 5% of Android phone profits while matching the volume combined, it's likely their sales are lower end and they tend not to be larger models.
Assuming it's a ratio of 3:1 in favour of smaller phones, Apple could potentially increase sales by 1/3 by making a bigger phone. However, that is missing out the fact that flagship Android devices are cheaper than Apple's whereas Apple's bigger version would cost either the same or more than their current ones and have almost nothing to differentiate it from the other ones.
The fact that Samsung had to bring out a Galaxy S4 Mini shows that people felt the S4 was too large. The guy from the Three network mentioned that some customers had requested a smaller phone. There's not really much difference between them either - no extra screen content etc:
Tim Cook addressed the issue of having a single model at D11 and said their current strategy has worked out well for them. Sometimes I think the reason people want Apple to bring out a larger phone is to turn round and say that Apple was wrong and they are following Samsung after they pioneered larger devices just like they tried to do with the iPad Mini. The reality is that Samsung is following Apple again by bringing out a smaller S4 and a wider 8" Galaxy Note.