According to the source, Apple will be making a lower-tier device that will be dubbed, the 'iPhone 5se'.The device is rumored to offer a 4" display and is inspired by the iPhone 5s, with some upgrades to the innards and shell. The "se" in the name stands for either "special edition" or “enhanced”, and while the device will be cheaper than Apple's current flagship devices, it doesn't intend to be a slouch when it comes to specifications. The source came forward for 9to5Mac and offered a slew of details regarding the iPhone 5se.
While the iPhone 6s introduced 3D Touch, the 5se will not, meaning the implementation of "Live Photos" will likely be powered by some kind of emulation rather than being sensitive to touch pressure. It's expected that the iPhone 5s will be retired and the iPhone 5se will take its place. The 5s currently starts at $0 on contract or $450 outright, so it could be expected that this lower-priced device will fall somewhere near those figures. The device is expected to be revealed in March, with a release to retail in April.
The chamfered, shiny edges have been replaced with curved glass like on the iPhone 6 and 6s lines
The same 8 megapixel rear camera and 1.2 megapixel front camera systems from the iPhone 6
Support for larger panoramas and autofocus for video recording
Barometer for tracking elevation in the Health app
An NFC chip for Apple Pay
The A8 and M8 chips from the iPhone 6
Bluetooth 4.2, VoLTE, and 802.11ac WiFi chips from the iPhone 6s
Live Photos from the iPhone 6s
Same Silver, Space Gray, Silver, & Rose Gold color options as the 6s line
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Source: http://www.neowin.net/news/apple-readying-a-new-4-inch-iphone-dubbed-the-iphone-5se
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