Rumor: Apple to release 4-inch iPhone powered by A9 processor in 2016

Apple may release a 4-inch iPhone in 2016, complete with a pretty impressive processor inside.

According to a note released recently by reliable analyst/guru Ming-Chi Kuo of KGI Securities, Apple will launch a 4-inch iPhone in 2016, complete with an A9 processor.

While new model may not generate huge sales, Kuo cited the following reasons for such a model:

(1) There is 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 stated that he expects the new model to incorporate an A9 processor manufactured by both TSMC and Samsung, 2.5D cover glass, NFC for Apple Pay, metal casing with at least two to three color options, and identical camera specs to the iPhone 5s.

He forecasted that the full-year shipments for a 4-inch model will hit 20 million units and will 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.

It’s been thought that relatively weak demand for the iPhone 6s model is affecting Apple’s motives with its next-gen iPhone models, albeit hard numbers have yet to be produced at this date.

Stay tuned for additional details as they become available.

Via MacRumors