You are comparing cheaper phones with substantially more expensive ones. For a meaningful comparison we have to compare phones with a similar price but different size.
False and irrelevant. The claim was "Phones kept getting larger and larger because larger phones sold better."
That claim is demonstrably false. Whether attendant facts like adjusting for price point lead to a subtler inference does not change the absolute fact that the proposition is not consistent with reality.
It's the difference between stated and revealed preference. Phones kept getting larger and larger because larger phones sold better.
Though apparently we have hit the sweet spot a while ago, as phone size is stable now.