Dubai: Apple is holding an event on Monday where it is expected to reveal a new four-inch iPhone SE (special edition), a 9.7-inch iPad and watch straps.

Apple has recently sent out invitations to media professionals for its March 21 event at the company’s Cupertino campus at 10AM Pacific Time (9pm Dubai time). The invitation does not reveal much; it only bears the text “Let us loop you in”.

Chief executive Tim Cook is also expected to use the event to comment on Apple’s ongoing feud with the Federal Bureau of Investigation over unlocking an encrypted iPhone 5C used by Syed Rizwan Farook, one of the two now-deceased terror suspects in December’s San Bernardino shootings.

According to speculations, the new iPhone is expected to be similar to the 5S, which was launched in September 2013, but will have a faster A9 processor and M9 motion co-processor (the chips currently being used by the new iPhone 6S models), improved 12MP iSight camera, 4K video recording ability and a near-field communication (NFC) chip for Apple Pay, but may miss out on having the 3D Touch display feature present in the new models. Apple introduced the new iPhone 6S models in September 2015.

Research firm Mixpanel’s data show that around 34 per cent of iPhone owners are using the smaller 4.7-inch iPhone 6 compared to 9.61 per cent of 5.5-inch iPhone 6 Plus as of March 1.

The appetite for smaller iPhones, which was first introduced in 2007, is strong across the world, especially in China and India.

The new Apple device will be virtually alone among the rival smartphone launches in display in terms of size. The majority of new launches this year are above 5–inches.

Apple joined the big-screen bandwagon, pioneered by Samsung in 2011 with its 5.1-inch Galaxy Note, in 2014 with its 4.7-inch iPhone 6 and 5.5-inch 6 Plus, followed by 6S and 6S Plus in 2015.

The company has sold more than 231 million iPhones in 2015 and predicts a slower growth as customers are holding onto their handsets longer and ahead of Apple’s September release of new iPhones.

The iPhone SE is also expected to come in four colours — silver, space gray, gold, and rose gold — and be priced between $400 and $500 (Dh1,469 and Dh1,836).

With the launch of SE, Apple is also expected to cut the price of 5S, which is currently priced at $499, to between $250 and $350.

Industry experts estimate that Apple could sell between 10 and 15 million units of the handset annually.

Moreover, the company is also to announce a refresh to its 9.7-inch iPad with an improved processor, similar to its larger 12.9-inch iPad Pro that made its debut in November 2015.

According to sources, the new iPad will have the same features as the bigger model with updated display technology and for Apple Pencil.