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The numbers on that site are a bit vague and I'm having a hard time making out the chart due to the colours, but they still sold millions of iPhone 13 Minis, right? Plus, you should probably add up the mini + SE as well for "small(-ish) phone demand".

I think you can make a profitable niche selling smaller phones. Most people don't want a 12" laptop either as they consider it too small, but some people do and various companies still make a profit designing and selling them. I don't quite understand why it's so different for phones.



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