The rumor comes from Unknownz21 (@URedditor) and says that the iPhone SE 4 will come with a design similar to that of the iPhone 14, as well as Face ID, USB-C, and the Action Button. The major difference from the iPhone 14's design, it appears, will be the camera on the back, which will remain a single-camera setup.
Apple has kepy the iPhone SE rather muted to keep the price down. The general idea has been to keep an aging design on this phone so that the development and manufacturing costs low. That's why the iPhone SE 3 currently has the same design as the iPhone 8, while having upgraded internals.
As such, the iPhone SE 4 is likely to arrive with a newer design. That means a notch, which brings Face ID. It appears Apple may choose to opt for the iPhone 14 design with this, as the rumor suggests. However, the SE 4 will have a bit of unification to it as, apparently, it may get the upcoming Action Button, as well as USB-C.
With the Dynamic Island set to come to all of the best iPhone models in the 15 series, the notch will officially become a retired design element. So it makes sense that the iPhone SE 4 will opt for this design. At the same time, we're likely to get flat edges.
The only major difference between the design of the iPhone 14 and the SE will be the back camera layout. The SE is likely to stick to the single-camera layout. It will be interesting to see how Apple sets it apart from the iPhone 14. It's likely that the SE 4 will stick to an older chip. The SE is also the only iPhone selling right now that has an LCD display. That may be another change that the SE 4 gets, with a potential switch to OLEDs.