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.

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.
Popular Stories
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive.
If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps.
Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states, Puerto Rico,...
Apple does not plan to refresh any Macs with updated M5 chips in 2025, according to Bloomberg's Mark Gurman. Updated MacBook Air and MacBook Pro models are now planned for the first half of 2026.
Gurman previously said that Apple would debut the M5 MacBook Pro models in late 2025, but his newest report suggests that Apple is "considering" pushing them back to 2026. Apple is now said to be...
Three out of four iPhone 17 models will feature more RAM than the equivalent iPhone 16 models, according to a new leak that aligns with previous rumors.
The all-new iPhone 17 Air, the iPhone 17 Pro, and the iPhone 17 Pro Max will each be equipped with 12GB of RAM, according to Fixed Focus Digital, an account with more than two million followers on Chinese social media platform Weibo. The...
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year.
In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
Production of foldable OLED displays for Apple's first foldable iPhone have begun ahead of its expected launch next year, Korea's ETNews reports.
The first foldable iPhone's displays are being produced by Samsung Display, who are establishing a production line dedicated to the upcoming Apple device its A3 factory in Asan, Chungcheongnam-do. The production line will make displays exclusively...
A new Apple TV is expected to be released later this year, and a handful of new features and changes have been rumored for the device.
Below, we recap what to expect from the next Apple TV, according to rumors.
Rumors
Faster Wi-Fi Support
The next Apple TV will be equipped with Apple's own combined Wi-Fi and Bluetooth chip, according to Bloomberg's Mark Gurman. He said the chip supports ...
iPhone 17 Pro and iPhone 17 Pro Max models with displays made by BOE will be sold exclusively in China, according to a new report.
Last week, it emerged that Chinese display manufacturer BOE was aggressively ramping up its OLED production capacity for future iPhone models as part of a plan to recapture a major role in Apple's supply chain.
Now, tech news aggregator Jukan Choi reports...