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Apple's new 4-inch handset rumored to be named 'iPhone 5e,' sport A8 CPU & 1GB RAM

Supply chain scuttlebutt over a new 4-inch iPhone continues to accumulate, with the latest rumors suggesting Apple will name its revamped handset the "iPhone 5e," with the letter 'e' potentially signifying that it is an 'enhanced' version of the iPhone 5s.

The rumored name comes from a new report published Monday by China's MyDrivers, which suggested the "iPhone 5e" is currently in production at Foxconn, ahead of an anticipated March release. The report also claimed the handset will feature an A8 processor with 1 gigabyte of RAM, countering earlier claims that the new 4-inch iPhone would feature the latest-generation A9 chip.

Keeping the device a mid-range handset, it was also said that the "iPhone 5e" will be limited to two capacities: 16 and 64 gigabytes, lacking the 128-gigabyte options found on the iPhone 6 and iPhone 6s lineups.

Monday's report suggests the defining features of the "iPhone 5e" will be support for Apple Pay, as well as voice over LTE capabilities for higher fidelity audio calls. The device was also said to be priced at 3,288 yuan, which is about $500 U.S.

Thus far, rumors have simply referred to the new device as an "iPhone 6c," following the naming convention of the iPhone 5c. However, for that product, the "c" referred to the range of colors its plastic casing was available in. The new 4-inch iPhone is expected to have a metal body available in just two or three casing colors.

Though it will look largely like an iPhone 5s, reports have suggested the design won't be completely unchanged. Specifically, it's expected the new, smaller iPhone will feature "2.5D" cover glass, or slightly curved like on the iPhone 6 and iPhone 6s, rather than the flat "2D" cover glass on the iPhone 5s.