Apple's next iPhone could have 4-inch screen

According to Taiwanese industry publication DigiTimes, upstream component suppliers report that Apple will expand the screen size of the fifth-generation iPhone to 4 inches in order to compete with a growing class of 'super phones' in the 4- to 7-inch range. By comparison, the iPhone 4 sports a 3.5-inch display with a resolution of 960 by 640 pixels.

The screen bump could also serve to push the iPhone toward the smaller end of the tablet market. "The component suppliers noted that the production lines for Apple's next generation iPhone have begun testing, and Apple is interesting in expanding the screen size to 4-inches to support the tablet PC market as the vendor only has a 9.7-inch iPad in the market," said the report.

Google Android-based phones appear to be driving the screen race, the report noted.

A recent unverified report from another Taiwanese website claimed that Apple has built three prototype models for the "iPhone 5," including a version with a "sliding cover" that conceals a keyboard.