According to a report from DigiTimes, citing TechNews, the tech giant could release a 4-inch model, bringing back the low-end model first saw in the iPhone 5c in 2013.
Recommended: Huawei Honor 6 Plus Review: Ergonomically Impressive
The report further says that AUO is almost ready to sign an agreement with Apple to supply iPhone screens of various sizes, including 4-inch, 4.7-inch and 5.5-inch LTPS in-cell displays.
"Apple is looking for additional panel suppliers both for current and upcoming iPhones in order to secure shipments, as other makers' yields have been fluctuating," according to a published report.
The publication further claims that AUO's role in Apple's supply chain isn't likely to begin until the launch of 2016 iPhones, which could be the next-generation of iPhones.
Earlier this year, the same publication had claimed that Apple would launch a 4-inch iPhone 6c model later this year. The cheaper model will feature scratch-resistant Corning Gorilla Glass, near-field communication (NFC), and fingerprint scanning technologies.
The Digitimes report also quoted sources saying that on the internal hardware side, the purported iPhone 6s will sport Apple's A9 chip set, while the 6c will stick to the A8 processor.
Going by these leaked reports, it seems that Apple is likely to support a 4-inch iPhone model in the near future. We'll update you as soon as we get any other information. Until then, take this rumor with a pinch of salt, no matter how reliable the source is.