> If there exists any number of people willing to buy small phones, then the statement "you have people who want them to fit in your hand" is true.
But the subtext is that this is enough of a population to make a viable market, that in fact any number of people, however small, make a viable market. It's just not a reasonable prior.
So I'm asserting that it may as well be zero as far as the big manufacturers are concerned, that with such a small audience it's not profitable. Further, that this dynamic does indeed play out in other markets.
OP is looking for a conspiracy as to why phone manufacturers are leaving money on the table. The truth is they aren't. This situation is exactly what you'd expect when there's no real market - a few niche providers making a few niche products for die-hards (without the scale, support or quality of the majors) and not making a lot of money at it, while the rest of the market ignores them.
But the subtext is that this is enough of a population to make a viable market, that in fact any number of people, however small, make a viable market. It's just not a reasonable prior.
So I'm asserting that it may as well be zero as far as the big manufacturers are concerned, that with such a small audience it's not profitable. Further, that this dynamic does indeed play out in other markets.
OP is looking for a conspiracy as to why phone manufacturers are leaving money on the table. The truth is they aren't. This situation is exactly what you'd expect when there's no real market - a few niche providers making a few niche products for die-hards (without the scale, support or quality of the majors) and not making a lot of money at it, while the rest of the market ignores them.