Apple is planning to launch a 4-inch iPhone that is basically like the iPhone 5s but with better internal hardware. It was rumored at first to be named iPhone 5se due to it being an "enhanced" version of the 5s and a "special edition," but the tech giant will reportedly drop the "5" from the name and call it iPhone SE. The new 4-inch smartphone will take the 5s price points and could be released at the Apple event during the week of March 21.

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This would be the first Apple mobile phone that does not have a number in its name. Since the market is mostly developing bigger smartphone screens, naming the phone SE could cause confusion in the 6 series lifecycle.

The SE will have the same exact look as the 5s, but the sides will be a little curved. It will also include an A9 processor and M9 chip for fitness tracking and continuous Hey Siri support, according to 9to5Mac.

Apple's new smartphone will also include a 12-megpixel camera, Live Photos support, NFC chip for Apple Pay, latest WiFi, and Bluetooth. There will be 16GB and 64GB versions.

KGI securities analyst Ming-Chi Kuo reports that iPhone SE will have a base price of $400 off-contract, according to Techno Buffalo. Kuo claims the 5s will get a 50 percent discount from its current $450 price tag.

A cheaper 5s would be a big windfall for emerging markets where there is interest in Apple handsets with lower price tags. A brand new $450 iPhone SE and $250 5s would cause many shoppers to choose those devices over the big screen 6, 6 Plus, or even soon-to-launch iPhone 7.     

The California-based company is also planning to launch a 9.7-inch iPad Pro with Apple Pencil and smart Keyboard support.

Apple will also reportedly roll out new Apple Watch products including high-end nylon straps. Watch 2 could be launched as early as September of this year.

KGI estimates 4-inch iPhone shipments will have 131 percent growth to about 37 million units during 2016. It believes most sales will be from iPhone 5s due to its price slash.

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