By calling this model "iPhone SE", they're plainly hoping to appeal to people who already own the earlier "iPhone SE" (and probably have not upgraded in several years). Among those people, the larger form factor is unpopular. Obviously, people who like big phones already have plenty of choice.
When they released the last SE, it was the previous generation phone design with updated internals at a lower price point.
When they released this SE, it is the previous generation phone design with updated internals at a lower price point.
I don't think Apple's intention was to get all of the "I like tiny phones" people to upgrade and they somehow just missed the mark. They know who they want to buy this phone, it just doesn't happen to be one group of people who liked the old SE.
Check out these stats from a year ago. On this app (which has a broad appeal), the 6/6S/7/8 had a 47% share. iPhone 5s/SE had 11%
The old SE form factor is great! And those who like it, like it a lot. But you're clearly wrong if you take that to mean that the new SE form factor is an unpopular one.
https://david-smith.org/blog/2019/06/24/the-popularity-of-th...