This may just be Derek Zoolander's next smartphone. The Jelly Android smartphone is a Kickstarter project for a wee 2.45-inch Android smartphone that claims to be the smallest 4G smartphone. Designed as a second phone, traveller's smartphone (with Dual-SIM capability) and novelty, the project comes in two versions (one with larger 2GB of RAM and 16GB of Storage), three colours and expects to ship by August.
I think smaller smartphones are cool, they have their uses and for many people who mostly make calls or text, they might make more sense than larger, more powerful smartphones. Jelly starts at US $79 and goes upwards depending on what model or specs you select.