Apple is rumored to be developing a new device with a 5-inch Retina Display, which will allegedly ship in 2013, and have a resolution of either 1280X960 or 1600X960. Apple is said to working with LCD suppliers to prepare for the device.
Although another rumor has hinted that Apple might be going as big as 4.6 inches for the next iPhone, the company may be reluctant to follow in the path of phones like the Samsung Galaxy Note and the LG Optimus Vu, which meet or exceed the 5 inch mark and can sometimes be cumbersome.
Apple could also be working on a larger iPod Touch, or the rumored “mini” iPad. Although most reports about the latter have specified a 7.85-inch screen.
It is also possible that Apple is simply experimenting. The company has experimented with several prototypes in the past before settling on final designs.