Yes, Phil, there is an iPhone Mini - I, Cringely

Some plausible iPhone speculation

"It’s important here to understand the purpose of such an iPhone Mini, which is two-fold. The first reason is to hit the Chinese phone market with a big bang, knocking Samsung back on its heels somewhat by making chic the smaller form factor and selling 100 million or more of them in the first year. The second reason for doing an iPhone Mini is to kill feature phones altogether, expanding smart phones to the entire mobile market. This alone doubles the potential market size and will give Apple another two years of robust growth."

Yes, Phil, there is an iPhone Mini - I, Cringely