Tech Analyzer:
"So, how exactly would a 4 inch iPhone affect the iOS ecosystem? We still expect the iPhone to keep up with sales, fanfare and the likes, however, as with any hardware running near identical software as differentiating hardware, we expect their to be a growth in iOS fragmentation."
Also, I recommend you read this article about fragmentation.
http://www.phonearena.com/n...
Also the article "Will a 4 inch iPhone introduce Fragmentation" already declared that Apple has fragmentation.