[usrusr]

“and people who need phones will still buy something even if reluctantly“

So true... And my anecdotal observation suggest another detail that makes small unattractive to brands: the way my social circles happen to be, I crossed path with plenty of owners of various incarnations of the Xperia Compact (r.i.p.). If my observations where representative, the Compacts would come close to outnumbering iPhones. They all wanted a small phone, somewhat waterproof and with a reasonably good camera. Almost all of them identifying strongly with some outdoor hobby like cycling or rock climbing, but wouldn't want a dedicated "outdoor" or "sports" phone. So far so good, looks like a pattern. But they have another thing in common: none of them would ever consider buying a high end phone (the Compacts were, or reasonably close) at or near release price.