In December 2014, Chinese site Feng.com announced a new 4-inch smartphone was in the works at Cupertino.
However, the same site reports now [via G for Games] that supply chain sources claim Apple has no plans for the release of such a device.
The iPhone production lines have not received an order for a new 4-inch version of the smartphone.
Thus rumors about a new iPhone seem unlikely so far given the new information surfacing.
The report also notes that Apple may prefer to stick to the 4.7- and 5.5-inch versions of the iPhone for the moment.