Return of the 4-inch iPhone?

The Cupertino, California, electronics giant might be working on such a phone for a March unveiling, according to a report Friday from tech blog 9to5Mac, which has built a reputation for reliably breaking Apple news. The model could be called the iPhone 5SE.

While Apple has met customer demand for larger screens in its iPhone 6 and 6S series, selling a smaller-screen phone would appeal to fans of more petite models. As Apple's main profit maker, keeping the iPhone fresh is imperative to a strong sales forecast. In a product marketplace where stalwart brands like Samsung and HTC struggle for steady growth, Apple continues to post a profit quarter after quarter.

Separately, 9to5Mac also reported that Apple is preparing to unveil new band styles for its Apple Watch in March, alongside a new version of the watch software. The second-generation Apple Watch design is said to be slated for the same month.