Moreover, they want to shift the majority of crowd to 4.7" and 5.5" hence it is highly unlikely that they'll introduce a 4.0" device whose features are at par with their flagship. A refreshed 4.0" device is to target those people that are yet to/reluctant to move to 4.7".
As for me and many other customers that like the 4" form factor and like a small phone you can just put easily in your pocket, this 5se phone is just what we need. I am sure that an surprisingly high amount of customers who stuck with the iP 5 or 5s and hate bigger form factors (or even returned from 6 and 6plus back to 5s) will be very happy and buy the 5se. These customers don't need toys, they are no gamers neither, they don't need higher resolution screens but want a practical and solid, sturdy phone without gimmicks, but longer battery life and give a s**t on more "thinness".
I am also very sure that these customers are very concerned about privacy and willingly pay for a more powerful processor eventually needed for decent encryption/security hardware that provides human rights on privacy.
They will demand as much memory as possible- so I hope that apple will not only sell 64GB but also 128 GB models.
I believe that many of the customers in the age of 40-70 years will love this iPhone - if apple listens to them, which seems to be the case as they reactivate the 4" model without gimmicks - and luckily with the classic 3,5 mm jacl connection! YEAH !!!
I am sure the 5se will sell like hell - it is also a sort of "back to the roots" as for me it was the most solid engineered phone apple ever designed and had already more than enough features to rest happy with it for many, many years.
Maybe (I don't hope so, but it might be) it will be the last iPhone that still has unbroken security features and encryption without backdoors for totalitaristic political systems.
So - I will wait to be sure that this model has no hardware or firmware bugs - and then I will even buy two of them. Will use it with a strong alphanumeric password and never ever activate the fingerprint -opener for police-states all around the world...
I bet this iphone 5se will be a big success !