New A9-Based 4-Inch iPhone Expected to Launch Early 2016 With Apple Pay and Colorful Metal Casing

KGI Securities analyst Ming-Chi Kuo has issued a research note corroborating rumors that Apple will release a new 4-inch iPhone next year, which he believes will resemble an upgraded iPhone 5s and launch in early 2016.

iphone_5s_5c.jpg

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.

Kuo expects the new 4-inch iPhone to have an A9 chip manufactured by both TSMC and Samsung, 2.5D cover glass with curved edges like on the iPhone 6s, NFC for Apple Pay, metal casing with at least two to three color options, and identical camera specs to the iPhone 5s -- an 8-MP rear-facing camera and 1.2-MP front shooter.

Kuo forecasted that full-year shipments of the new 4-inch iPhone will reach 20 million units, with production beginning in the first quarter of 2016. The research note said the new 4-inch iPhone could be priced at between $400 and $500 in the U.S., which would be $149 to $249 cheaper than the 16GB iPhone 6s.

The analyst also reaffirmed that the iPhone 6s may not outsell the iPhone 6, with a possible 30%-40% decline in quarter-over-quarter shipments, based on recently slowed orders within the supply chain. Kuo believes the new 4-inch iPhone could help the slowdown for suppliers.

Recently slowed iPhone 6s orders validates our prediction six months ago that the model may not outsell iPhone 6, potentially resulting in the supply chain returning to a normal cycle starting 1Q16F, and with shipments declining 30-40% QoQ. While the new 4-inch iPhone may not catalyze shipments, it should still help mitigate slow seasonality for suppliers and a negative impact on share performance. This would also in turn raise investor awareness of the Apple supply chain.

Kuo added the iPhone 7 will enter mass production in the second quarter of fiscal 2016.

Related Forum: iPhone

Popular Stories

Apple Wallet ID Illinois

Apple Plans to Expand iPhone Driver's Licenses to These 7 U.S. States

Wednesday December 24, 2025 8:40 am PST by
In select U.S. states, residents can add their driver's license or state ID to the Apple Wallet app on the iPhone and Apple Watch, and then use it to display proof of identity or age at select airports and businesses, and in select apps. The feature is currently available in 13 U.S. states and Puerto Rico, and it is expected to launch in at least seven more in the future. To set up the...
iPhone Top Left Hole Punch Face ID Feature Purple

iPhone 18 Pro Launching Next Year With These 12 New Features

Tuesday December 23, 2025 8:36 am PST by
While the iPhone 18 Pro and iPhone 18 Pro Max are not expected to launch for another nine months, there are already plenty of rumors about the devices. Below, we have recapped 12 features rumored for the iPhone 18 Pro models. The same overall design is expected, with 6.3-inch and 6.9-inch display sizes, and a "plateau" housing three rear cameras Under-screen Face ID Front camera in...
maxresdefault

Where's the New Apple TV?

Monday December 22, 2025 11:30 am PST by
Apple hasn't updated the Apple TV 4K since 2022, and 2025 was supposed to be the year that we got a refresh. There were rumors suggesting Apple would release the new Apple TV before the end of 2025, but it looks like that's not going to happen now. Subscribe to the MacRumors YouTube channel for more videos. Bloomberg's Mark Gurman said several times across 2024 and 2025 that Apple would...
maxresdefault

10 Mac Apps Worth Trying in 2026

Wednesday December 24, 2025 9:27 am PST by
2026 is almost upon us, and a new year is a good time to try out some new apps. We've rounded up 10 excellent Mac apps that are worth checking out. Subscribe to the MacRumors YouTube channel for more videos. Alt-Tab (Free) - Alt-Tab brings a Windows-style alt + tab thumbnail preview option to the Mac. You can see a full window preview of open apps and app windows. One Thing (Free) -...
iOS 26

iOS 26.2 Adds These 8 New Features to Your iPhone

Monday December 22, 2025 8:47 am PST by
Earlier this month, Apple released iOS 26.2, following more than a month of beta testing. It is a big update, with many new features and changes for iPhones. iOS 26.2 adds a Liquid Glass slider for the Lock Screen's clock, offline lyrics in Apple Music, and more. Below, we have highlighted a total of eight new features. Liquid Glass Slider on Lock Screen A new slider in the Lock...
airpods color prototypes

Apple Tested AirPods in Bright Colors

Saturday December 27, 2025 6:06 am PST by
Apple reportedly tested a version of the first-generation AirPods with bright, iPhone 5c-like colored charging cases. The images, shared by the Apple leaker and prototype collector known as "Kosutami," claim to show first-generation AirPods prototypes with pink and yellow exterior casings. The interior of the charging case and the earbuds themselves remain white. They seem close to some...
iPhone Fold Vertical Feature

Why Apple's Foldable iPhone May Be Smaller Than Expected

Tuesday December 23, 2025 5:21 am PST by
Apple's first foldable iPhone, rumored for release next year, may turn out to be smaller than most people imagine, if a recent report is anything to go by. According to The Information, the outer display on the book-style device will measure just 5.3 inches – that's smaller than the 5.4-inch screen on the ‌iPhone‌ mini, a line Apple discontinued in 2022 due to poor sales. The report has led ...
Foldable iPhone 2023 Feature Iridescent Search

Samsung Developing 'Wide Fold' With iPhone Fold-Like Design Ahead of Apple's 2026 Launch

Tuesday December 23, 2025 11:55 am PST by
Samsung is working on a new foldable smartphone that's wider and shorter than the models that it's released before, according to Korean news site ETNews. The "Wide Fold" will compete with Apple's iPhone Fold that's set to launch in September 2026. Samsung's existing Galaxy Z Fold7 display is 6.5 inches when closed, and 8 inches when open, with a 21:9 aspect ratio when folded and a 20:18...
iPhone SE Cosmopolitan Clean

Apple Discontinued These 25 Products This Year

Wednesday December 24, 2025 7:24 am PST by
With the end of 2025 near, the time has come to look back at the devices and accessories that Apple discontinued throughout the year. Most of the products that were discontinued this year were simply replaced by a new model with an updated chip. However, the iPhone SE line was entirely discontinued when the iPhone 16e launched, and the iPhone Plus line is being phased out. Below, we have...

Top Rated Comments

zed1291 Avatar
131 months ago
If true, this will be THE iPhone for all those who still gripe about the iPhone 6 models being "too big"... a chance for those apparent multitudes to put their money where their mouth is. It will be interesting to see how many "first world" units sell vs. the bigger-screen iPhones. Will some? Sure. Some 3" iPhones would sell too as would some 6.5" iPhones if Apple rolled either out.

The question is will many sell (other than in countries where the price is the most key variable in choosing this one over the larger-screened iPhones)? It looks like we may get to find out.

And, IMO, that's great. Choices are good. One (or two) size(s) does not fit all.
I am one of the people who wants to see a new 4" iPhone. But not getting this phone won't mean in not putting my money where my mouth is. I want the newest iPhone in 4", not some repackaged iPhone from 2 years ago.
Score: 27 Votes (Like | Disagree)
zed1291 Avatar
131 months ago
How can there be a demand for a phone with a .7 inch smaller screen? Doesnt seem worth it , why not just reduce the bezel on the next iphone
Because 4.7" is way too big. I hate reachability and I never want to have to use it again.
Score: 22 Votes (Like | Disagree)
macduke Avatar
131 months ago
If it has an A9, don't expect it to be $150-250 less. Maybe $100 less, especially if they skimp on the camera and 3D Touch. It's too bad, however, that those who are willing to pay but need a smaller device can't get the best iPhone out there. Just like 6s users are stuck with worse video than the 6s Plus owners who have great stabilization, even though there is no physical reason they couldn't have added it. The size of our hands should not dictate which features we are allowed to use. Apple should be ashamed for denying features based on accessibility, which they usually champion for. Especially if the 4" size is seriously limited. Users with smaller hands (including many more women than men) should not be discriminated against in this way. Just charge the same as you always did for 4" devices. The market can withstand it—they did before!

Just to be clear, I'm perfectly happy with my 4.7" 6s. But I know many people, especially women who refuse to upgrade because they don't want to use a "big phone", even though to you and me the 6s is not big. As someone who does UX design as a big part of their job, I'm always having to put myself into other people's shoes. It just plain sucks for people who used small phones for years and now have to stretch and balance and try not to drop their phone just because big phones are currently trendy. Reachability helps to a certain extent—but it doesn't make it easier to hold and it doesn't make it suddenly fit back inside girl jeans.
Score: 20 Votes (Like | Disagree)
0815 Avatar
131 months ago
Not sure about the source's reliability, but there is a market for a "cheaper" 4" iPhone for sure ...
skip the cheap ... there is a market for a 4'' iPhone. While I am not in that market (I love my 6s+), I know enough people that want a 4'' phone with the latest technology, not yesterdays technology.
Score: 14 Votes (Like | Disagree)
StudyFlo Avatar
131 months ago
So, where's the flood of pixelated pictures of new parts for this handset?
Score: 11 Votes (Like | Disagree)
Corrode Avatar
131 months ago
For a while I thought I didn't need or want a bigger phone but since having my 6s, I don't think I could go back to 4". (Insert size joke here)
Score: 10 Votes (Like | Disagree)