It says the name is to ensure customers see it as a 'special edition' rather than a flagship phone. 

The new device is internally codenamed 'N69,' but the launch name will likely be the 'iPhone 5se.' 

'The 'se' suffix has been described in two ways by Apple employees: as a 'special edition' variation of the vintage 4-inch iPhone screen size and as an 'enhanced' version of the iPhone 5s.' it claims.

'The '5se' will have a design similar to 2013's flagship but upgraded internals, software, and hardware features that blend the old design with modern technologies from the past two iPhone upgrades.'

A mysterious video claiming to show Apple's new 'mini' iPhone has surfaced online, but is now believed to be fake.

The video appears to show a version of Apple's iPhone 6 with a four inch screen.

Apple is rumoured to be preparing to launch the smaller handset, expected to be called the 6c or 7c, at an event in March.

Posted by MIC Gadget, it is claimed the product is an engineering sample from iPhone maker Foxconn.

'4-inch iPhone 2016 model design have similar design like iPhone 6s, but smaller,' the video caption says.

'We don't have more information, but it's one of the first demo examples from Foxconn department.

'Sorry, but we can't show more tech specs.' 

However, the video admits the final model could change, and at blog 9to5mac notes, 'The ratios of the speaker holes is very similar to the 4.7 inch phone so it's not 100% that this phone is actually smaller (perhaps the camera guy has big hands).'

According to a recent leak from China Mobile, it could go on sale in March.

In a presentation outlining its 2016 roadmap, China Mobile showed a slide that revealed an iPhone 7c will launch in March.

This is the first time this name has been used for the upcoming, smaller device. 

It has previously been referred to as the iPhone 6c. 

It is the same presentation during which the operator leaked the similar release date of Samsung's Galaxy S7 and the translation has been verified by Chinese website MyDrivers, as spotted by 9to5Mac. 

Experts say the phone will have the same rounded design as the larger 6s - but the colourful appearance of the iPod touch, as shown in these mockups from 9to5Mac.

Since releasing its larger Apple iPhone range in 2014, the tech giant's devices have consistently topped the sales charts, but many have lamented the demise of its 4-inch handsets.

Rumours that Apple will return to manufacturing these smaller 'iPhone minis' have been circling for months, but a Chinese network operator may have just given the best indication yet.

Apple is reportedly planning a March event for the Apple Watch 2, and it is believed the new handset will be unveiled at the same time. 

The firm will then save the launch of its rumoured iPhone 7 and iPhone 7 Plus until its traditional September event.

Given the fact that the iPhone 7c could be released before the official iPhone 7, it is more likely the phone will be called iPhone 6c.

KGI Securities analyst Ming-Chi Kuo said: 'While new model may not generate huge sales, Apple still has good reasons to launch.

'We estimate 15 to 17 million 4-inch iPhones will be shipped in 2015. 

'We estimate the new 4-inch model will account for 8-9 per cent of total iPhone shipments in 2016, have an expected price of US$400-500, with the aim of penetrating emerging markets and consumers on smaller budgets.'    

Elsewhere, the 4-inch iPhone is expected to have an A9 chip manufactured by both TSMC and Samsung, and glass with curved edges like the iPhone 6s.

It will come with Apple Pay, two to three colour options, and the same camera specs as the 5s - an 8MP rear-facing camera and 1.2-MP front shooter.

Earlier this year Piper Jaffray's Gene Munster told clients 'we expect the iPhone 7 to sport a unique design from the iPhone 6/6S'.

He believes it will do away with the home button, instead relying on the 3D Touch screen introduced in the 6S. 

The move would mean Apple has to move the Touch ID sensor to elsewhere on the phone. 

Previous claims have said the iPhone 7 handset will be superthin.

Ming-Chi Kuo added the iPhone 7 will be the firm's thinnest handset to date at just 6mm thick.

This would put on a par with the iPod touch, and would be almost a millimetre thinner than the current iPhone 6. 

Apple's original iPhone, released in 2007, was 12.3mm thick. By comparison the current iPhone 6 is 6.9mm thick, while the larger iPhone 6 Plus is 7.1mm.

(http://www.dailymail.co.uk/sciencetech/article-3412676/Apple-s-mini-iPhone-called-5se-unveiled-March.html)