Many people loved the size of iPhone 5S and later the iPhone SE. These phones were really convenient in handling with the same iPhone experience. With dwindling sales in emerging markets like China and India where Apple has fierce competition from Huawei, OPPO and Xiaomi, Apple might release the successor to the iPhone SE or a sub-$400 iPhone. This iPhone will be a 4.7-inch screen sized phone like the iPhone 8.
The phone will use an LCD display instead of an OLED, however, will be powered by the latest A13 chipset that will be featuring in this years iPhone. For Apple, to release a cheaper version of the iPhone makes sense to combat the slowing down sales of iPhones in India where the market is price-conscious. In fact, Google as well launched a scaled-down version of Pixel 3, the Pixel 3a and tasted success with the same.
This strategy might also work for Apple as once the new flagship iPhones sale slowdown, it can introduce a product in the market that will drive the numbers for them. Speculations were high in 2017 as well for the launch of an iPhone SE successor. Hence at this point in time, we can take this news with a pinch of salt and only keep hoping that Apple releases the iPhone SE successor.