Rumor: Is Apple diversifying the iPhone lineup to compete with Android?

Currently Apple offers only the newest generation of the iPhone, in one form factor, as well as one version of last year's model. A new report from Kaufman Bros. analyst Shaw Wu suggests Apple may be looking to diversify its iPhone offerings.

Wu's supply chain checks have reportedly revealed that Apple is sourcing a variety of touch-screen options, both smaller and larger than Apple's current 3.5-inch offering, though the report does not mention what specific sizes those would be.

Some feel that Apple must diversify its iPhone lineup due to increased competition from Android-based phones, citing the iPad as a signal that varied iOS devices would be welcomed by consumers. This, however, is not Apple's modus operandi.

Apple makes precise products after extensive research and testing, keeping their product lineups clean and simple. If you want a new iPhone, you just pick the storage capacity (and maybe the color). The likelihood that Apple will produce various-sized iPhones just because Android is picking up market share is slim.

Apple is not a market share company. It does, however, dominate profit share. And that is where Apple will continue to succeed. If screen size is going to vary, I would put my money on the iPod Touch, iPod Nano, or iPad carrying various sizes. Despite the ado about Android, I don't think Apple is really worried enough to break from its one iPhone for one year plan.

In fact, having a ubiquitous market share leader driving the bottom rung has been working great for Apple for the last decade (read: Microsoft). Android's everywhere-ness only highlights the strengths of Apple's integrated ecosystem and helps to drive smartphone awareness in general. It's a win for Android (market share) and a win for Apple (profit).

But what do consumers think? Are you interested in a bigger, or smaller, iPhone? Let me know in the comments!