New 4-inch iPhone could use Apple's A8 chipset, might be released in the first half of 2016
According to Japanese blog Mac Otakara (which has a good track record when it comes to all things Apple), the new compact iPhone is already in production. Reportedly, besides a 4-inch display, the device should feature an Apple A8 chipset (the one found inside the iPhone 6 and 6 Plus), an improved FaceTimeHD camera, Bluetooth 4.1, and Wi-Fi 802.11ac. Basically, the next-gen 4-inch iPhone should be an upgraded iPhone 5s, though it's not clear if its body will be made out of metal, or plastic.
A couple of days ago, we heard that the new 4-inch iPhone would be released in the second half of 2016, not in the first half - so, right now, we have conflicting information about this. We also don't know what the name of the handset will be - Apple could call it iPhone 6c, in order to differentiate it from the premium 6s and 6s Plus models, but that's just an assumption.
Earlier this year, designer Martin Hajek created an iPhone 6c concept in order to let us see what it would look like next to the iPhone 6s and iPhone 6s Plus. Check out the concept below:
source: Mac Otakara (translated) via MacRumors