REUTERS/Hannibal
Customers stand in line at the Apple store in Berlin, as they wait to buy the newly released iPhone 6 September 19, 2014.
The phone would "resemble an upgraded iPhone 5S" with an A9 processor (the same as in the iPhone 6S) but no 3D Touch, the headline feature of the latest handsets. This would help differentiate the lineup, according to Kuo.
Apple previously made a "lower-end" iPhone 5c which was later scrapped due to poor sales. However, Kuo argues that "there is still demand for a 4-inch iPhone, we believe Apple will upgrade this product line." As the iPhone expands into China and other markets with a growing middle class, offering an array of options can help broaden its appeal.
One of the ways Apple may differentiate the 4-inch iPhone from the 5c is by making it all metal.
Kuo's track record as an analyst is virtually unparalleled. He correctly predicted the launch of a 4.7- and 5.5-inch iPhone, the 12-inch MacBook, the two size variants of the Watch, and the hardware inside the iPhone 6S.
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