The tech bloggers, pundits, analysts, and many MR forum posters keep insisting that phablets are all the rage and Apple has missed the boat. We keep hearing that Apple is doomed because everyone has moved to large screens. Well let's see what Google's own data says about the breakdown of Android devices by screen size:
Screen size - market share
--------------------------------
Small (2"-3.5") - 9.5%
Normal (3.5"-4.3") - 79.9%
Large (4.3"-7") - 5.7%
XLarge (greater than 7") - 4.9%
Source: http://developer.android.com/about/dashboards/index.html (as of April 24,2013)
That means that phablets (Samsung GS3, GS4, Note, Note2, LG Optimus Pro, HTC Butterfly, HTC One S, One X, One, Xperia Z, etc) PLUS all the 7" tablets (Galaxy Tab 7, 7 Plus, 7.7, Nexus 7, Archos, Asus, HP, Acer, Sony etc) combined make up just 5.7% of the entire Android installed base. Its probably reasonable to assume that phablets alone constitute somewhere less than 5% of all Android devices. This sure sounds like a niche category to me. As can be seen from Google's data, the vast majority of consumers purchase devices in the (gasp) Normal size.
Some of you like big phablets. That's great, and there are many great devices out there for you. But as a company that releases just one phone, I think its clear why Apple picked a screen size of 4".
Put it this way. When the next iPhone comes out and if it's the same size as the i5, lets see how well it sells. If it sells great then you're right Apple doesn't need to create a larger size phone. But, if it does not sell well and it's clear people want more options then Apple needs to focus on customer needs.
It is very clear that more and more people are looking for a larger screen. There is nothing wrong with giving that option. Palm refused to change with time. RIM refused to change with time. Apple is far from Palm or RIM, but it starts somewhere.
Anyone who thinks Apple "can do no wrong" is simply ignorant. It's a company run by humans. It's not God.
PS: My brother has the BlackBerry Z10 and that phone is the perfect size. It's just slightly larger than the i5. If Apple launched the next iPhone with that same it would sell volumes.