Apple's iPhone 5Cs phones are displayed on racks
Apple's iPhone 5Cs phones are displayed on racks bearing the logo of China Mobile, at a mobile phone shop in Beijing December 23, 2013. Apple Inc said it has signed a long-awaited agreement with China Mobile Ltd to sell iPhones through the world's biggest network of mobile phone users. REUTERS/Kim Kyung-Hoon REUTERS/Kim Kyung-Hoon

Amidst non-stop buzz about the highly-anticipated iPhone 7, word of a new but smaller device the size of an iPhone 5 and dubbed as iPhone 7c is also erupting.

The 4-inch iPhone 7c is expected to be launched in early 2016 and might not be that less powerful compared to the mighty iPhone 6s, according to industry sources. Early reports suggested the 4-inch iPhone will be named as iPhone 6c, but the latest reports claims it will named the iPhone 7c, according to GSM arena

Ming-Chi Kuo, KGI Securities analyst and a reliable source of authentic Apple leaks, anticipates this phone that resembles the iPhone 5S will come with a 4-inch screen and a metal body; will run the latest A9 processor and will be named as iPhone 7c, MacRumours reports. Other features like an NFC chip and Touch ID for Apple Pay will be included.

Similar to the iPhone 6s, the iPhone 7c will reportedly feature curved-edge glass and will come in several colour options. The new phone won’t have the newest cameras, however. It will feature the 8 MP and 1.2 MP shooters found on the iPhone 5s.

Although Kuo desisted from referring to the new phone as the iPhone 7C, other sources suggest that name is in line with the budget Apple 5C released in 2013. Kuo claims the iPhone 7c is less likely to generate huge sales but does fill the niche for a small screen iPhone.

If the iPhone 7c is sold at a lower price, Apple can enjoy the benefit of appealing to a wider consumer base, and that would, in turn, help the adoption of Apple Pay.

As to why the supposed new iPhone is being launched at the beginning of the year, Kuo explains iPhone 6s orders have slowed dramatically and that the latest model won’t sell more than the iPhone 6.

Word is the 7c will use the older A8 processor. Foxconn says the 7c is already in mass production and will come in five bright colours.

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