As Apple recently launched its phablet, iPhone 6Plus, it will introduce another size to the iPhone family in early 2016.

The mobile phone giant will be launching an iPhone with a 4-inch display. The mobile phone will have capabilities and support for Apple Pay, as said on a research note by a reliable Apple products analyst, according to Tech News World.

The said model will still be boasting the same A9 processor that is found in the latest iPhone models. Moreover, iPhone addicts can expect the 4-inch-display phone to come in different colors. The phone will accordingly have a combination of the 2.5D cover glass with curved edges of the iPhone 6s and the 8 megapixels rear and 1.2 megapixel front camera of the iPhone 5s.

"Some consumers don't want or need a larger display phone, and a 4-inch phone would enable Apple to play in that space and even hit a lower price point. If Apple does bring out a lower-priced phone, it will sell very well," Patrick Moorhead, founder and principal analyst at Moor Insights and Strategy, told TechNewsWorld.

"They need to do it in a way, though, that reinforces their premium brand, not denigrates it. Otherwise, it's not a real win for Apple. I really think Apple is trying to attract a bit of a different audience with this new phone. By broadening their installed base of active phones with Apple Pay, this will correspondingly increase the use of Apple Pay."

The new iPhone is also seen as a way to boost Apple Pay transactions since not many people are using such service. Apparently, this is not only a move to sell more phones, but also to entice consumers with the said iPhone to use Apple Pay in their daily transactions.

However, according to Cult of Mac, Piper Jaffray’s resident Apple analyst Gene Munster sees that the company will just be wasting its time in making the said model because he claims that 'customers don’t really want smaller handsets at all.'

What do you think of the latest venture of Apple on making the 4-inch-display iPhone? Do you think it can help boost the usage of the Apple Pay service? Or will it flop like the iPhone 5c did?