Analyst claims 4-inch iPhone will come with A9 chip, support Apple Pay and launch early next year

iPhone 6c

In his latest research note issued to investors, KGI Securities analyst Ming-Chi Kuo states that Apple will release a new 4-inch iPhone early next year.

The 4-inch iPhone, which has been dubbed as the ‘iPhone 6c’ in previous rumors, will look like the iPhone 5s and will sport a metal build. The analyst also says that the handset will come with an A9 chip, support for Apple Pay, and camera specs similar to iPhone 5s. Like Apple’s previous budget offering, the iPhone 5c, this new 4-inch iPhone will also be available in a multitude of colors.

While new model may not generate huge sales, Apple still has good reasons to launch. These are: (1) still-existing demand for 4-inch smartphones. We estimate 15-17mn 4-inch iPhones will be shipped in 2015. We estimate the new 4-inch model will account for 8-9% of total iPhone shipments in 2016F; (2) expected price of US$400-500, with the aim of penetrating emerging markets and consumers on smaller budgets; and (3) adoption of NFC will support Apple Pay, benefiting the ecosystem.

However, Kuo notes that the new model will likely not generate much sales for Apple, with the company shipping only around 15-17 million units in 2015. Despite the low numbers, the handset will help Apple in fulfilling demands of customers who still want a 4-inch iPhone, and help the company make inroads in emerging smartphone markets like India where the device will sell with a price tag of around $400-500.

The analyst also mentions in his note that the iPhone 6s will not outsell the iPhone 6 with a decline of anywhere around 30-40% in its shipments on a QoQ basis.

Rumors about Apple launching a 4-inch iPhone early next year have recently picked up steam. Many different sources have claimed that the handset will be launched next year and come with a metal casing. With so many sources corroborating each other, it definitely adds credence to rumors of a 4-inch iPhone from Apple coming early next year.

[Via MacRumors]