Apple is about to release its newest 4-inch iPhone early in 2016, according to rumors. The new device is said to be sold cheaper starting at the price of $400.

According to Ming-Chi Kuo, an analyst at KGI Securities, the new 4-inch iPhone of the tech giant will probably look like an upgraded iPhone 5s. He also stated that the upcoming device will be built in a metal casing with some features identical to the recent entry-level iPhones.

In terms of specifications, Kuo projected that the latest 4-inch device will have some of the latest upgrades of the current iPhone models for a reliable performance. He believed that the handset will be powered by an A9 processor, a latest 64-bit ARM based system-on-chip specifically designed by Apple.

Aside from that, the potential iPhone 6c will also include the technology of Apple Pay thru the incorporation of a Touch ID and NFC chip. Unlike the latest iPhone franchise, the device will only feature an 8MP rear camera and 1.2MP front face shooter just like the iPhone 5s.

For the design, it is believed that the future device will be case in a metal body for a more solid finish. Kuo also expected that the new, smaller iPhone will showcase a "2.5D" cover glass, either straight or slightly curved like the iPhone 6 and iPhone 6s.

At the price of $400 to $500, the KGI analyst said that the main focus of the new device is to reach customers with smaller budgets. Although it is believed that the future phone will not acquire large amount of sales, Kuo still perceived that there is still an existing demand for a 4-inch smartphone.

The so called iPhone 6c which will be available in several colors, is projected to be launched this coming February of 2016.