One size may no longer fit all when it comes to the iPhone. That's the theory of Kaufman Brothers analyst Shaw Wu, who recently told investors that Apple's Far East supply chain is developing phone form factors that are both larger and smaller than the current iPhone 4's 3.5" screen size. Wu also predicts the newer models could be introduced earlier than Apple's traditional annual cycle.
If true, this could suggest a multi-tier approach similar to the iPod product line (as per the artist's rendition above) that targets entry-, mid-, and high-level users. Coupled with the ongoing "Verizon's getting an iPhone" rumors, and we're looking at a possible multisize/multi-platform market penetration that would help counter growth gains made by Android phones.