According to sources of 9to5mac, Apple is planning a march introduction of a newer 4 inch iPhone. The last 4 inch iPhone was the iPhone 5S and this will be an upgraded version of the same, with the name iPhone 5se.
This will give potential buyers a choice of screen sizes from 4 inches all the way to the 5.5 inch iPhone 6S Plus. A lot of users have complained about being forced to use a phone 4.7 inches when prior to the iPhone 5, the standard screen size was 3.5 inches.
The phone, codenamed N69 will have a similar design to the iPhone 5S, but will have rounded glass edges rather than the chamfered ones of the older model. Industr insider John Gruber of Daring Fireball believe this to be an unlikely blend of styles.
Other features set to be included are:
The same 8 megapixel rear camera and 1.2 megapixel front camera systems as the iPhone 6
Support for larger panoramas and autofocus for video recording
Barometer for tracking elevation in the Health app
An NFC chip for Apple Pay
The A8 and M8 chips from the iPhone 6
Bluetooth 4.2, VoLTE, and 802.11ac WiFi chips from the iPhone 6s
Live Photos from the iPhone 6s
Same Silver, Space Gray, Gold, & Rose Gold color options as the 6s line
The Apple iPhone line up will be: iPhone 5se, iPhone 7, iPhone 7 Plus by the end of this year. The 4 inch phone is rumored to be unveiled in March.