Apple is currently in the process of finalizing its plans to introduce a brand-new, four-inch 'budget' iPhone allegedly called the iPhone 5e.

According to a report from Tech Times, sources claim the smartphone will officially be called the iPhone 5e because it will be an "enhanced" version of the the iPhone 5s. The phone promises to be much like the iPhone 5s, only with enhanced features.

It was initially speculated that the so-called "budget iPhone" will be called the iPhone 6c, much like the 2013 offering, the iPhone 5c. There were even leaked pictures circulating online of the alleged smartphone, but recent reports have said that Apple is going ahead and calling the entry-level smartphone the iPhone 5e.

Sources claim that the iPhone 6c will feature the A9 processor and 2 GB of RAM. This would make the budget iPhone on par with that of the specs of the iPhone 6s and 6s Plus. However, now that those plans seem to have been tossed to the wayside, sources are now claiming that the iPhone 5e will be very similar to that of the iPhone 5s, only with slightly uprgaded features.

The iPhone 5e specs reportedly include a four-inch Retina display, Apple's 64-bit A8 processor as well as 1 GB of RAM.

Apple will also reportedly add NFC and Touch ID to the iPhone 5e that will allow it to support Apple Pay. This feature is absent on the iPhone 5s unless paired with an Apple Watch.  

Mac Rumors also says that the iPhone 5e will be slightly thinner and lighter than the iPhone 5s. This could very well mean that the new 4-inch iPhone will be very similar to a sixth-generation iPod touch.

The new 4-inch iPhone will boast dimensions of 122.90 mm ​​x 57.63 mm, which makes it fractionally thinner than the iPhone 5s. Apple will also use 2.5D cover glass like the iPhone 6s.

The iPhone 5e will reportedly have the same rear-facing 8-megapixel iSight camera as the iPhone 5s. The report also says that the iPhone 5e will be available in Rose Gold and other existing iPhone colors.

There are also multiple reports that claim that the iPhone 5e will have an anodized aluminum finish like the iPhone 5s, unlike the plastic casing of the budget iPhone 5c.

The iPhone 5e release date will reportedly be in February to March of this year, though it is suspected to coincide with the Chinese New Year on Feb. 8. Besides the iPhone 5e, Apple is also slated to release the Apple Watch 2.