I agree with the expensive part. Especially in some places outside the us where it costs a couple hundred more us.
Not sure if I agree with the 4" phone part though. According to this the se sold only 16% and that cut into the 6 series. People who buy the smaller iphone appear not to be android converts but apple users that wanted a smaller phone.
"Apple’s newest 6S and 6S Plus models, which start at $650, accounted for just 65% of all U.S. sales in the second quarter, according to a survey of buyers by Consumer Intelligence Research Partners, or CIRP. The quarter before, the two high-end phones accounted for 71% of sales. A year ago, the then-top two models, the 6 and 6 Plus, accounted for 82% of sales, CIRP said.
The iPhone SE captured 16% of sales in the most recent quarter, with most of the rest going to the mid-tier iPhone 6 and 6 Plus first introduced in 2014."
http://fortune.com/2016/07/20/apples-cheap-iphone-se/
It's still not a cheap phone. A 64 gig se here in mexico costs 622. us dollars. Apple is competing with itself.