Originally Posted by afv011
They went to 4" due to market pressure (and at 4", the iphone 5 has a small screen by today's standards, and lowly resolution when you consider we are getting now 1080p screens). I can't see them going back to pre-iphone 5 screens; if you want 3.5", you might as well get an iphone 4s.
It is about addressing the needs/wants of different segments of the market. I have a Samsung with a smaller screen and am more than happy with it. It does what's needed of it, it is more portable, and it was less expensive. Now I don't know how important that stuff is to the market in general, but I suspect that it may be important. After all, Samsung has had a lot of success in the marketplace because they produce phones that offer a variety of formats and features at a variety of prices.
Keep in mind, people have different expectations for their phones. Some people may demand 1080p. Other people may just want something to make phone calls with. Most people will be somewhere in between.