Why would Apple produce a larger screened iPhone? Because Apple’s extensive research shows there is not much growth available for a 4 inch phone costing more than $300.

Despite the impact this will have on developers with a new screen size there is no choice. This year they can phase out the 3.5 inch screened 4S and have a larger screen and the 5S 4 inch screen model, thereby still keeping to just 2 different screen sizes.

More interesting is the slide below showing why the ended up in this position.

Basically the competition has levelled the playing field and Apple needs to respond. Lets see what they bring out in September or sooner.

Source – http://recode.net