According to the document that was attached to Job's email, Apple worked on an even smaller iPhone in 2010. These intriguing plans for an iPhone nano have not materialized in the almost ten years since the passing of the tech icon.
https://www.notebookcheck.net/Internal-email-from-Steve-Jobs-reveals-Apple-s-scrapped-plans-for-an-iPhone-nano.556112.0.html
"Tie all of our products together, so we further lock customers into our ecosystem".
They have executed it successfully.