"Somewhat true" was in relation to small android phones selling well because that's what people want. IMO there's a market for that but the vast majority of small Android devices are significantly less costly than their Apple competition. Also, these mini versions of the premium Android handsets are coming out as another way for their manufactures' to hold market share through appealing to people who can't or won't pay for the bigger version and indeed some subset of that market likes a smaller phone.
Also, outside of technology aware people most cell phone users don't understand anything about open. They think "that looks nice and ooohhh look it's free". They don't understand that many of those cheap phone will never be upgraded to the latest version of Android. All they care about is when Netflix or Youtube stop working because they are supported on Android 1.5 or the latest game pops up, not compatible with your device errors when they try to download it from the play store.
No one is saying stop making the small iPhone. Just offer a larger one too. It's a no brainer and would cannibalize parts of the most profitable portion of the Android market.
Cheers,
All I am getting at starting with my first post, is there is a valid market for feature rich, small Android phones. The existance of the small feature rich, premium priced Android phones (and the fact that the iPhone still sells well) is proof of this.
On the subject of Marketshare (something I didn't bring up), Android's being open to many types of Hardware & Software variations is why I feel it is highly popular, more than it's various pricepoints.
My earlier comment,
I think Android's popularity is also due to it's openness and variety
Speaks directly to your following comment
They think "that looks nice and ooohhh look it's free".
Clearly cost is a factor, however since Apple has had a free or $1 iPhone for quite some time now, it is only part of it.
To add to it, Android has a wider variety of shapes, button layouts, and even colors because of the openness of that platform. Consumers don't need to understand the differences between the two platforms to know that the iPhone doesn't come in blue, with a nifty LED lightswitch, or big chunky volume buttons that feel good. They also don't need to be Tech savvy to enjoy a type of skin, animation, or UI effect they see on the screen.
I feel that again, Android is more popular because of the variety it provides, than it's cheaper price (which isn't the case anymore). Android having a little more of something for everyone is a much bigger factor (IMO)
Lastly,
I too agree, Apple offering more sizes would be great, so long as it doesn't fragment iOS too much, by making developers do too much extra work to make applications work on all hardware types.