Apple is once again reportedly preparing a new 4-inch iPhone, this time for a 2016 launch. According to KGI analyst Ming-Chi Kuo, the device will reportedly feature the same Apple A9 system-on-a-chip as the current iPhone 6s and 6s Plus. Additionally, the device will reportedly come in at least three colors and have a metal body.
Kuo expects the new 4-inch iPhone to an A9 chip 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.
Apparently, Kuo also expects this new phone to enter production in the first quarter of 2016, well ahead of the rumored iPhone 7. Speaking of the iPhone 7, Kuo believes that it will enter production at some point in the second quarter of 2016.
As with all such reports, remember that nothing is official until Apple announces it. Even if they never release it, it's highly likely that Apple has at least investigated a new 4-inch iPhone since moving the top-of-the-line devices to 4.7 and 5.5 inches in 2014.