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Why not a small laptop?

I think there is is a need, but there are already products from a number of suppliers. I recently bought a second hand IBM ThinkPad X40 on which I run Unbuntu linux. It has a 12.1" screen. wireless network, decent hard disk, full size keyboard, weighs about 2.5lb, etc. It is a PC and there are around half a dozen machines of similar specification form competitors.

What I do not understand is why a 12.1" laptop is more expensive that a 15.4" one. In nearly every other market segment, smaller is cheaper (cars, mp3 players, televisions, loudspeakers, etc). I guess it is lack of volume and that the (mainly business) market will pay.

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