Apple introduced the iPhone SE in March this year which combined similar specs to the iPhone 6S in the body of the iPhone 5S, including the 4-inch screen, at an affordable price. The result was largely a success, and even Apple CEO Tim Cook said he didn't expect the overwhelming demand for the device.

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KGI Securities analyst Ming-Chi Kuo, who has been accurate on a number of Apple rumours before, says there won't be a follow-up model in 2017.

The main reason for no new model is it may affect iPhone 7 and iPhone 7 Plus sales, which are already struggling because of lack of demand, especially in China.

Because the current model has the same specs as the 6S, the only logical step would be for the new model to have the same specs as the iPhone 7. Apple would obviously much rather consumers buy the more expensive models, so will hold off releasing a cheaper SE model to encourage them.

Apple is also said to in talks with component suppliers to reduce costs to help it improve profits, although some suppliers such as Samsung are unlikely to budge, but smaller companies may well be forced to.

Kuo predicts Apple will sell fewer iPhones in the current quarter, around 40-50 million, down from 51.2 million in the same quarter a year ago.