I understand that Apple did not make enough money to make it worth their while to continue the iphone mini line. However, it does seem like there is a profitable business for someone there given how beloved it was/is.
I only traded out my iphone 12 mini just recently for an iphone 16 pro (likely the last apple product I will ever buy but thats another story) and aside from the camera it is basically the same. Just heavier, awkward to hold and slightly worse designed.
No major player wants a smaller screen because it has downstream impacts on the pipeline of addictive material and ad pixels they can stuff into ocular nerves.
Then few months later they launched the mini expecting it to sell even more or something. Somehow they missed that everyone that wanted a small phone had just bought the SE, and it just wasn't long enough for them to be worth upgrading to the much better mini.
Had they waited for a year to pass the mini might have done much better because those who wanted a more powerful phone could find an excuse for an upgrade after a year, less then 6 months, not so much.
My wife, I, and several people I know had iPhone 12 or 13 Mini. Their battery life was pretty terrible and word soon got out it was. I think this was in the end what killed it for people who are normally buying Apple flagships and were considering a Mini. It was very hard to get through the day with a Mini.
Besides the abysmal battery life, I think the market for small phones is maybe simply not there. Samsung keeps around one smaller model (base S-series) and arguably the Z Flip is a smaller model (but persistent hardware issues). If there was a large demand for flagship-class small phones, I am sure some Android manufacturers would make them.