Apple is reportedly planning to release the third version of the iPhone 6, which is a 4-inch version of the device, supposedly called the iPhone 6s Mini sometime this year.

The speculations started from the investor's note by analyst Timothy Arcuri from Cowen & Company. Arcuri said that the iPhone 6s Mini will add to the flagship series, which consists of the 5.5-inch iPhone 6 Plus and 4.7-inch iPhone 6.

The analyst added that the Mini version's specifications will be largely similar to the iPhone 5s but with curved edges and budget friendly components.

Aside from that, the iPhone 6s Mini will reportedly have an improved camera and processor compared to the 5s and will come in multiple colors similar to it, but consistent with the latest trends.

The device will reportedly be sold for a limited number to control its price. Apple may run it with Qualcomm to maintain the affordable pricing.

Reports say that the iPhone 6s Mini may replace the iPhone 5c as Apple's current low cost handset. The iPhone 5c proved to be a success for consumers who prefer quality but affordable smartphones as well.

In June 2014, it was reported that Apple sold 24 million iPhone 5c models despite the criticisms that it is a failure. In August 2014, it became the top selling smartphone in Britain and surpassed the sales of iPhone 5s and Samsung Galaxy S5.

The launch of iPhone 6s Mini may attract users who are not fond of bigger handsets. On that note, the 4.7-inch iPhone 6s is even deemed as too big by some customers.

Aside from that, the creation of a budget friendly phone may help Apple in accessing big markets such as China, India and Africa who are into low-cost smartphones.

As for the release date, speculations have emerged saying that the iPhone 6s Mini will be unveiled in September, 2015.