The iPhone 5 will almost certainly have a bigger screen, as reported by people familiar with the situation according to Reuters.
Apple has reportedly tapped suppliers in Japan and South Korea to create 4-inch displays (measured on the diagonal), which would increase the real estate by 30 percent, these people said. Apple currently uses a 3.5-inch display in all of its iPhone models, the latest of which feature higher-resolution versions - Retina displays.
Early production of the new displays is said to have commenced at three suppliers, namely Korea's LG Display, Japan’s Sharp, and Japan Display.
Production of the next-generation iPhone is said to be planned for August, which would corroborate many analysts’ beliefs that Apple will hold a special event in fall to unveil the product.