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Another under-mentioned reason is that iPhones have more efficient processors that generate less heat, and also need less RAM to perform equivalently.

Whereas, fitting a top-line Snapdragon into a small phone is a challenge. There’s a reason why top-tier phones have copper heatpipes, vapor chambers, and so on. All things no iPhone has or needs.

You could still do a small Android phone, but you might have to abandon the idea of including a Snapdragon 8.