We’re hearing a lot about how Apple is believed to be working on a 4-inch iPhone slated for release in early 2016. Now comes news the new phone will support Apple Pay.

The mysterious phone, which some have taken to calling the iPhone 6c, will come packed with an NFC chip to support Apple Pay, according to renowned leaker, Ming-Chi Kuo of KGI Securities. Kuo has a good track record of predicting Apple’s moves. He also predicts the 4-inch iPhone will be an ‘upgraded’ version of the iPhone 5s rather than the iPhone 5c.

Kuo also believes the iPhone 6c won’t support 3D Force Touch, the pressure sensitive display technology on the latest iPhone 6s and 6s Plus, according to The Verge. He said the new device could only account for eight to nine percent of total iPhone shipments in the 2016 fiscal year.

The new phone will be way cheaper than the iPhone 6s and 6s Plus. Apple is selling the iPhone 5s at US$450. The expected price of the rumoured iPhone 6c is between US$400 (AU$546) to US$500 (AU$683) in the U.S.

Along with the 4-inch device, Apple is also expected to unveil the next generation iPhone 7 in 2016. Kuo also mentioned Apple might start mass production of the new range of handsets by the second quarter of fiscal 2016, reports Mac Rumors.

Kuo also said the iPhone 6c is expected to house an A9 processor like the iPhone 6s. He also believes the camera will be the same as that in the 5s. the iPhone 6c will house an 8 megapixel main camera and a 1.2 megapixel front snapper. The phone will come in a glass covered metal case that will have slight curves at the edge. Apple will release the smartphone with at least two to three colour options.

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