I do not believe that Apple has lost anything. I feel that they see the current market and where it is headed with larger screens. Granted, information on the new phones is all over the board. It seems that the 4.7" phone will only be slightly larger than the 4" size. For those who want a bigger screen but not that much added size overall, this should fit the bill.
For the 5.5" phone, if true that it is coming, it will fill the gap for the audience that would like or need a screen of that magnitude. If we look at the amount of Note 3's, LG 3's, Nexus 5's, etc... that have been sold over the past couple of years, Apple can capture a fair share of that market, they will blow theit revenue numbers out of the water.