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Please note that the market is not just the consumers. Companies make larger phones because they expect to make more money because they expect to sell more because everyone buys these phones because they're what's on offer - a self-reinforcing cycle.

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Doesn’t that mean a company could gain huge market share and profits by being the only one with a smaller phone?

I don’t buy your self-reinforcing cycle. I think it’s pure demand — consumers want bigger phones, scale economies mean small phones cost more per unit to produce, nobody wants to make an unprofitable niche device.

I'd say the self reinforcing element is a bigger phone allows for a bigger battery and other bigger numbers. It's easier to market bigger numbers so that's what gets prioritised.

Re consumer demand. Would most care? I would guess 50% of phone buyers only actually use basic functionality, but then those aren't the ones spending loads for the latest model, so that would seem to be more fashion/economics, rather than demand per se.

False. Even when smaller phones are on offer, people still don't buy them and prefer the larger ones.

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