It will feature the same A9 chip as the iPhone 6S, according to reputed KGI analyst Ming-Chi Kuo (via TechRadar). This isn't the first time we've heard this particular rumour – Bloomberg previously cited an anonymous source who said the same thing. But this bolsters the rumour.
Kuo also suggested some other specs for the SE. He said it'll sport a 12-megapixel camera and NFC support, so you can use Apple Pay.
On the software side, it will have Live Photos, so your snaps seem to come alive.
He also reckons it will have a slightly curved glass display.
He even went so far as to suggest a price. According to Kuo, the iPhone SE will cost between $400 and $500 – that's between £290 and £360, which would make it significantly cheaper than Apple's current roster.
Kuo added that the iPhone 5S would get a price cut. That would be in keeping with current Apple upgrade plans, going by recent years.
The SE moniker is said to stand for Special Edition. Rumours say the handset will launch at an event on March 15th, and go on sale on March 18th.
Read more: 5 reasons we need a new 4-inch iPhone
Apple is also rumoured to launch a new iPad at the event.
We'll bring you all the rumours until then, alongside the official word from Apple. Stay tuned.