Apple has announced smaller versions of the iPhone and iPad Pro at an event hosted in San Francisco and streamed online.
The iPhone SE has the same processing and graphics performance of the larger Apple 6S, the firm said, and can capture 4K video.
The new iPad Pro will have a 9.7 inch screen – the same size as the original iPad.
The iPhone SE will will be available in 110 countries by the end of May.
With a starting price of $399/$499 (£277/£346) the new iPhone is the “most affordable price ever” for a brand new handset, Apple added.
Apple said it sold 30 million four-inch handsets last year.
Apple’s sales have slowed in recent months but so has the smartphone market in general, with some analysts predicting up to a 15% decline in shipments in the first quarter of 2016.
“The smart phone market has definitely consolidated around five and six inch devices globally so the question is why has Apple come out with a slightly smaller version?” said Annette Zimmerman, a research director at analyst Gartner.
“It is not really to capture a trend, but these people who are on an iPhone 4 or 5 and are quite happy with the size.
“It’s a way to upgrade them and obviously selling a phone with a smaller screen size helps with the margins on these devices,” she added.
“I don’t think it will lead to the sort of strong growth we saw after the iPhone 6 came out – that would be really difficult to top.”
The firm also showed off a recycling robot called Liam which can strip down old iPhones into their components for reuse.
The Apple Watch is to come down in price to $299 (£207) from its launch price of $349, chief executive Tim Cook announced.
Mr Cook kicked off the event with a few words about Apple’s dispute with the FBI over the unlocking of the iPhone which belonged to the San Bernadino gunman.
The firm has so far refused a court order to assist the Feds with accessing the data stored on the handset.
“We did not expect to be in this position, at odds with our own government,” he said.
“We believe strongly we have a responsibility to help you protect your data… And your privacy.
“We will not shrink from this responsibility,” he added.
Source: BBC