A respected analyst has confirmed that he believes a new 4-inch iPhone will be coming in early 2016. The new iPhone 6c will be similar to the iPhone 5c, but will have a metal casing instead of plastic.

The iPhone 6c is expected to be released in early 2016, and it will actually look very similar to the iPhone 5s with a metal casing, Mac Rumors reports.

KGI Securities analyst Ming-Chi Kuo put out a research note that backs up rumors of an upcoming iPhone 6c.

Kuo said that the iPhone 6c probably will not generate big sales for Apple, but it makes sense to build the device. Kuo added there is still demand for 4-inch smartphones, even though most smartphones are now 5 inches or larger.

Kuo expected the price of the iPhone 6c to be between $400 and $500, and to be marketed to customers on smaller budgets, as well as to emerging markets.

The chip used inside the iPhone 6c will likely be the brand new A9 processor, manufactured by both TSMC and Samsung, Kuo said. The A9 processor is the same processor used in the current generation iPhone 6s.

According to the expert, the screen on the iPhone 6c will use 2.5D glass, and the display will have curved edges, similar to the iPhone 6s. Instead of being made of plastic, the iPhone 6c will use a metal casing and be available in at least two to three colors.

The iPhone 6c will be equipped with NFC and a fingerprint sensor allowing for Apple Pay transactions, Kuo said. It will also share the same cameras as the iPhone 5s, an 8 megapixel (MP) rear-facing camera and a 1.2 MP front-facing camera.

Kuo expected production of the iPhone 6c to begin in the first quarter of 2016. For the entire year, he expected 20 million units of the new phone to be shipped.

Kuo also commented on the sales of the iPhone 6s. He expected that it will not outsell the iPhone 6, with a possible 30 to 40 percent decline in quarter-over-quarter shipments. Orders for the new iPhone have slowed down within the supply chain. Kuo thought that the iPhone 6c could help suppliers with the slowdown.

In his research note, Kuo also added he believed that the iPhone 7 would enter mass production in the second quarter of fiscal 2016.