UPDATE 28/12/2016: 9to5Mac is reporting a possible successor to the iPhone SE.
What is interesting about the latest rumour is that this smaller iPhone will have dual cameras, but vertical ones instead of horizontal (as on the iPhone 7 Plus).
It's likely an update to the iPhone SE, which happens to fit most of the iPhone 6s internals into a very small body. The trouble is whether this smaller iPhone will cannibalise the sale of current iPhones.
The iPhone SE did get fairly good reviews and there was a market for a smaller iPhone so another powerful but tiny phone might make a good complement to the latest iPhones. Let's see if this materialises or if Apple decides (again) that the 5in display fans will have to wait.
A better display
UPDATE 30/11/2016: The Wall Street Journal just reported that Apple might be testing more than 10 prototypes of the upcoming iPhone 8.
Apparently a curved OLED screen is one option but because of the price and the difficulty in obtaining large numbers of the required screens, Apple might feature it on one variant instead of all models.
Suppliers have apparently been told to increase output of prototype OLED screens, with better resolution than the ones created by Samsung. But as they cost a lot more to produce, Apple might forego OLED and wait for the price to market to lower.
OLED would allow Apple to create more flexible screens and a curved OLED screen could be in the works for the next iPhone. Still, there's also the possibility that Apple might delay it to 2018 as word is that manufacturers have been told to ready enough screens by then and not 2017.
Analyst Ming-Chi Kuo is back with more predictions about the next iPhone and to be honest, it would be great if they were true.
Apparently wireless charging might finally come to the iPhone and to make that happen, the iPhone's chassis needs tweaking - think the company joining the all-glass club. It might be part of Jony Ive's dream - the designer has wanted a phone made from a single sheet of glass for years if rumours are true.
While glass would be more fragile, it would allow better charging speeds than wireless charging through metal. An end-to-end display would probably entice users who held off getting the iPhone 7 and after years waiting for wireless charging, this could just be the anniversary edition iPhone fans have been waiting for.
With Xiaomi, who has traditionally taken a lot of inspiration from Apple's designs, one-upping the maker in the hype stakes, we'll have to see if Apple can take the hype crown back next year.
After being thoroughly shown up this year by Xiaomi's concept Mi Mix, Apple has a high bar to surpass.