If they end up listening to the market, then they'd be facing the "innovators dilemma" which Jobs (I believe highlighted as a favorite book). It's not about giving consumers what they want
You're wrong. Jobs never said that.
He said that you don't want to listen to sudden trends which get replaced by new trends.
If someone says they want a bigger screen and don't come back to iPhone unless the demand is fulfilled by an iPhone, then that's that.
Glassed Silver:ios
Thank you, GS. You explain it well. Steve Jobs wanted to give customers the best experience possible. When customers wanted larger flash on MP3 players or better smartphone keyboards, what he really knew was that customers would rather have a 4GB HDD MP3 player than a 256MB flash MP3 player at the same price. What he really knew was that customers would rather have a digital keyboard that doesn't interfere with the screen, than a digital one that folds up.
He did not ignore customers' desires at all. He just asked what customers REALLY wanted and gave them that. Perhaps Apple thought that by "larger display" many cell phone customers just wanted "higher resolution" aka, Retina. However such a guess is wrong and customers really do want 5-6" displays and unsubsidized prices of >$300.
Finally Apple is realizing that and kudos to those on these boards who understood that reality.