There are reports emerging that Apple may soon launch a new 4” iPhone in 2014 to go along with the 4.7’iPhone 6 and the 5.5” 6 Plus models currently available.
According to sources, the 4" device's specs may resemble the iPhone 5S', though with a newer design aesthetic. The older, smaller version of the phone still has fans, espeically overseas in Japan. Apple still offers the 5 and 5S for sale in the older, smaller size.
The price point is unknown at this time, though there is speculation that the new 4" iPhones could also help Apple better compete against mid-range Android phones without heavily cannibalizing sales of high-end larger models.