KGI claims the phone will also feature a 12 megapixel camera, matching the latest iPhones in megapixels. KGI also believes the new 4 inch iPhone to sell between $400-$500 range. This would be a significantly cheaper phone than the current lineup: the year-old iPhone 6 starts at $549 …

Along with the release of the new iPhone, KGI also claims that the iPhone 5s will receive a significant price cut. It claims a 50% reduction for the 5s, which currently sells for about $450, pushing the older-generation phone down to around $250. This would be a huge boon for emerging markets, which have shown strong interest in iPhone but high prices have turned a lot of people away. A ‘brand new’ iPhone at $450 and an older model broaching the $200 off-contract price point would push a lot of new customers to iPhone, who aren’t necessarily concerned with waiting for the iPhone 7 or bigger screen (and more pricey) iPhone 6 and iPhone 6s options.

KGI estimates 131% growth in 4-inch iPhone shipments, to around 37 million units in 2016. According to the analyst, most of these sales will come from the substantially cheaper iPhone 5s, not the new 4-inch phone.

Apple is expected to announce the iPhone SE at an event on March 15th, alongside a new 9.7 inch iPad Pro (previously dubbed ‘the iPad Air 3’) with accompanying Apple Pencil and Smart Keyboard accessories. It is also prepping a spring refresh of its Apple Watch bands, including new nylon and Space Black Milanese Loop options.

Looking forward, KGI reiterates its sourcing that the iPhone 7 will have clear distinctive product segments, including single-camera and dual-camera SKUs for iPhone 7 Plus as earlier reported.