The 14 is the smallest phone on the market right now.
If people left iPhone for Android, they’d be going to larger phones.
The 14 is the smallest high class smartphone on the market right now. There are smaller, cheaper ones from mostly chinese manufacturers.
Why would Apple want that? It’s an entire extra production line, requires more deals with more manufacturers, needs a lot of R&D, extra support. Their entire business model is to keep all those factors as simple as they can get away with and charge premium prices for the products they do sell to off-set conquering the entire market against low profit margins.
Apple could get into the business laptop market too, easily, but then they’d ruin their reputation as premium laptop builders so instead of catering to 95% of the markets, they just up the profit margins on the devices they do sell and are still doing better than all other laptop manufacturers combined.
“Well enough to make a profit” is not what Apple wants to be known for amongst shareholders.
Not wanting to cater to the "cheap" market is something else than simply not selling a device class.
If you include the iPad line Apple is selling everything from a rather compact digital assitant (iPad mini) to full blown workstation laptops. None of them are cheap, but they cover pretty much the entire range. Same for desktops, where they offer everything from the Mac mini, which is considerably inexpensive
even for PC standards, up to a (currently a bit lacking) Workstation PC.
If you consequently applied your R&D, support and supply chain centric logic .... Apple should only sell the iPhone and
maybe the Pro Max, since every other model they offer pales in comparison, especially the Plus, which sells almost (if not) as bad as the mini. Even more so: with this logic applied selling the SE doesn't make a hint of sense. Even if most of the hardware is basically old parts: since you actively cater to a market that is not willing to buy your high priced options you willingly compromise on margin, while still having to manage an albeit mostly existing supply chain and support an additional device 5 years down the line - plus there is
some R&D even in the SE.
So, no, I respectfully reject that logic as flawed. There is a market for smaller phones, and I believe if the new SE really is basically the 14 all over again this will become very much apparent. The one thing I am willing to concede is that there is no room in Apples lineup for
both the SE
and the mini. Since it's inception the SE basically functioned as the "small" phone. The SE1 was the small alternative to the 6 to 10 era, and the SE2 and 3 filled that role since then. Cramming in a high priced flagship mini was the problem.
People that prefer a smaller phone are more utility centric. You want a portable device that works for communication and organisation, allows some basic time killer games or basic video consumption, works for navigation and to look up the next restaurant in a yiffy, and that has a camera to capture a nice moment, scan documents or document a car crash. They are the same crowd of people that are fine with buying basically a 3-4 years old phone with reduced features if it only does those things, has a decent few years of software support and costs a good bit less.
The SE crowd
IS the mini crowd. And yes, two devices for one demographic .... that really ain't the way Apple does things.