Profits vs market share... which is most important?
I think what really matters is how profitable a company is whether or not they're missing out on a particular market. If all the other companies are gaining market share with large display smartphones and they're operating on razor-thin margins, then it's not really to their advantage. If you really look at Apple's financial situation, they don't seem to be hurting at all missing out on the phablet market. Yes, their growth will slow because they're selling LESS devices than other companies but their overall financial situation will remain the same. In other words, flat growth isn't as terrible as many analysts make it out to be. Apple will always be at an market share disadvantage to Samsung who goes after every price point but as long as Apple can sell 40 or so million iPhones per quarter, Apple will remain financially sound while other companies lose money when selling even more smartphones. Apple is proving that it can remain profitable even by not selling phablets so I'm not sure why people have a problem with this.
As a shareholder it has puzzled me why Apple waited for such a long time to go to larger sized displays. Sure, Tim Cook gave the reasons why they didn't but it really didn't make much sense to me because all the other companies seemed to be doing OK by selling large display smartphone to consumers without complaints. Anyway, as soon as Apple does start selling larger display iPhones they'll likely sell even more iPhones and become even more profitable.