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KGI Securities analyst Ming-Chi Kuo has issued a research note in which he claims Apple's next-generation 4-inch iPhone will feature a 12-megapixel rear-facing camera



From MacRumors:
Kuo also reiterated that the new 4-inch iPhone will have other similar hardware specs as the iPhone 6s, including an A9 chip and NFC for Apple Pay. The device's form factor is expected to be similar to the iPhone 5s, although the display is said to have slightly curved 2.5D glass like the iPhone 6 and newer.

Apple's new 4-inch iPhone could also feature 16GB and 64GB storage capacities, 802.11ac Wi-Fi, Bluetooth 4.2, Live Photos support, and a slightly larger 1,642 mAh battery compared to the iPhone 5s. 3D Touch will likely remain exclusive to the iPhone 6s and iPhone 6s Plus as a differentiating feature.
  New 4" iPhone With 12MP Camera Said to Cost $400-$500, iPhone 5s to Receive 50% Price Cut