4-inch iPhone to Feature A9 CPU, NFC and Launch in Early 2016: KGI

Following up on earlier rumours of a 4-inch iPhone, well-connected KGI Securities analyst Ming-Chi Kuo says the upgraded iPhone 5s – dubbed as iPhone 6c – will incorporate the same A9 chip that powers the iPhone 6s and 6s Plus models, and an NFC chip to enable Apple Pay (via AppleInsider).

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In line with what other sources have been reporting this week, Kuo’s sources say Apple will wrap up the next-generation, 4-inch iPhone in a colourful metal casing and will include a rear camera identical to that of the iPhone 5s.

There are several reasons why a cheaper iPhone – the iPhone 6c is said to retail at between $400 and $500 in the US – makes sense, Kuo explains. First, there is huge demand for 4-inch smartphones, and he estimates the 4-inch model will account for up to 9% of total iPhone shipments in 2016. He says Apple will sell up to 17 million iPhone 5s units this year. Next year, 4-inch iPhone shipments are expected to hit 20 million.

Secondly, he points to Apple Pay: Integrating an NFC into the colourful device will benefit the mobile payment platform, which has so far struggled to take off.

Finally, Kuo predicts the colourful 4-inch iPhone model will enter production in the first quarter of 2016, and be launched in early 2016. As for the flagship model, he says iPhone 7 orders will start the next quarter following the assembly of the 4-inch model.

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