Would Apple really make an iPhone mini?

For the last couple of years, analysts have waxed poetic about an iPhone mini. The logic is that Android’s dominance of budget and emerging markets will "force" Apple to release the mythical budget iPhone. Is there anything to this, or is it just a bunch of hot air? On the surface, an iPhone mini looks like a no-brainer.
The iPod mini, Mac mini, and iPad mini were all cheaper – and successful – versions of iconic Apple products.
From a business perspective, each of these minis lowered the entry fee for its product line. But from a consumer perspective, they each added something else: The iPod mini (and, later, the iPod nano) added greater portability. Gym rats, commuters, and children loved its smaller form factor, and it went on to outsell the classic iPod.
The Mac mini adds flexibility, as the only consumer Mac that isn’t an all-in-one. It smooths the transition for Windows converts who already own a monitor, mouse, and keyboard. The iPad mini adds portability and comfort. It’s much lighter and easier to hold than the 9.7-inch iPad, which it is likely outselling (possibly by a large margin).