But the difference would be in the entire design of the phone. It would be big devise vs small device. It would not just be different screen with same case. That would be stupid. It would be same internals with different cases and screens. Not much else different though. Maybe memory options...
Sent from my ADR6425LVW
Exactly the problem. Most consumers don't care about hardware specs. They want a device that works for them. The majority of smartphone users can't tell you processor speed, number of cores, RAM, Storage, etc. This concept is undisputed, and is recognized by every tech professional.
When Joe Consumer goes shopping for a phone, and is presented with:
Phone A: Works for what they want to do, and is 4 inches, costing $200 (With contract discount)
and
Phone B: Works for what they want to do, and is 4.8 inches, costing $200
Most will pick B. The ones that don't will still buy A, REGARDLESS of if A or B is top of the line specs or not. To a manufacturer, that means the spending the time and money on development of high end, small phones isn't worth the payout. Carriers also see this, and they understand that the expensive, higher performance small devices sit on the shelf. (Rezound is one that jumps to mind quickly) They will not buy these handsets at 5-600 dollars a pop to have to sit on them until they devalue, and get sold for a loss. Of course, this does disappoint a small segment of users that really desire that particular combination, but the reality is that you can't please everyone all of the time.
Now, you will see smaller bezels and truer edge to edge screens eventually, which will shrink devices some, but there is currently a limit on how well you can do that.