It seems to me there's room in the market for one or two high-end compact Android phones. It's not a big enough segment for every company to sell one profitably, but if someone really nailed that niche....

Lower-priced sports cars don't sell well lately either, but Mazda continues to do well with the MX-5. There's a lot of value in finding an underserved niche and making a product that fills it perfectly.