zlacker

The margins are also worse, which is way, way closer to a manufacturer’s bottom line than the software ecosystem.

There is demand for larger phones, yes, but manufacturers also charge more for bigger devices and most of that is margin. Following their own logic, they also charge less for smaller phones.

If your customers are sticky, then many of the people who buy the smaller phone would have otherwise bought a bigger phone for more money. Introducing a smaller phone brings down profits.

>>conrad+(OP)
>manufacturers also charge more for bigger devices and most of that is margin.

Why do they do that though? Usually more compact, high end devices would be more expensive than bulkier one. When has this trend reversed?

>>ginko+6u
Bigger equals better consumer perception, I imagine driven in part by the top-tier phones being larger to fit additional battery capacity in for the higher performance processors making all larger devices carry some premium cachet.