Despite rumors that Apple has plans to release a 4-inch iPhone 7 later this year, Ming-Chi Kuo, largely regarded as the most accurate Apple analyst on the planet, recently issued a research note explaining why such rumors may ultimately fall flat.
In a research note obtained by AppleInsider, Kuo relays that with the iPhone 5s currently poised to become Apple’s “free with subscription” model, the Cupertino-based company has opted not to engineer an entirely new 4-inch iPhone 7 or 7c model, as had previously been rumored.
The iPhone 5s is certainly a more than capable device, but because it lacks an embedded NFC chip, folks opting for Apple’s flagship 2013 device won’t be able to use Apple Pay. I suppose the calculus Apple did led them to the conclusion that a cheaper to manufacture iPhone 5s is ultimately more profitable than a brand new 4-inch iPhone with Apple Pay functionality enabled.
All that said, folks who aren’t into the larger displays that come with the iPhone 6 or iPhone 6 Plus, there’s no reason to fret. Kuo adds that Apple in 2016 will come out with a brand new 4-inch iPhone model for those who prefer an overall smaller display.