> It does seem weird that instead of continuing to serve this market, Apple assumes everyone wants their same large form factor and it's only a matter of price.The problem there is that they can't get the smaller form factor, +nice specs, at that low price but at a higher price it would probably not sell as good because the SE line always had that air of "more affordable iPhone" to it.
That why this new SE is exactly iPhone 8 dimensions, to a point where Apple even confirmed that iPhone 8 cases will be compatible with the new SE.
So it stands to reason that they retooled a lot of their 4.7-inch production to make this "SE" as affordable as it is.
Trying to put all of that into a 4-inch screen form factor like the original SE, would require sourcing completely different parts, require much more retooling of already existing manufacturing processes, for many parts, there'd be zero overlaps with their other products.
So while people like me prioritize the 4-inch screen smaller form-factor, Apple chose to embrace the SE as a "budget iPhone" brand that makes all the other "budget" competition look like really outdated and lame ducks.
Which is most certainly a bigger market than people prioritizing size of the device over anything else.