This is possible - 9to5Mac website writes about it, referring to the Economic Daily News report. The new model would appear in 2020.
According to the Economic Daily News, the compact iPhone would have a screen size of just 4.7 inches. Unfortunately, those who count on the really small dimensions of the casing and the frameless screen may feel disappointed reading the rest of the report, indicating that the model is supposed to be similar in appearance and stylization to the iPhone 8. A compact iPhone would not have facial recognition, but classic, round button with TouchID fingerprint reader.
Fortunately, the interior is to fill, among others processor A13, which we find in this year's upcoming models - we can therefore talk about the full-fledged successor of the iPhone SE. The price - the new SE should be noticeably cheaper than the other Apple models. It is said about the amount of about $ 650, but for now it is definitely too early to think about the price and specification of these models. Nevertheless – there are possibly such plans...