The iPhone’s display size has not changed. Apple’s iPhone is usually 3.5-inch. Unless a new report by Reuters is correct.
Reuters says that Apple is reportedly placing orders with suppliers for 4.6-inch Retina Displays. The new displays will be used in the next iPhone (nicknamed as iPhone 5 by Apple fanboys). According to Reuters, the new iPhone is expected to release sometime in the second quarter.
Those who complain of Apple’s “tiny” displays compared to displays from some competitors. If this report is true, now there is going to be a massive Apple handset which users would try to fit in their pants. The increased display size would allow Apple room to implement a A5X processor, or perhaps debut the still missing A6 processor. By comparison, the Samsung Galaxy S II (stylus) has a 4.65-inch display, and the Samsung Note has a 5-inch screen.
However, there is little possibility of this rumor to be true. Reports, including specs and thousands of cases designed for a larger iPhone surfaced last year before the iPhone 4S launch. The popular narrative is that Apple ran into production problems with a true iPhone 4 successor, and had prototypes with a larger screen floating around. That is why, there were leaked specs, and thousands of useless cases. Still, these specs included a tapered design with a screen size of roughly 4.2-inches, which is not like the massive 4.6-inches reported by Reuters.
Apple has proven that it is willing to upgrade the displays of their devices, but changing the actual size of the display and the possible aspect ratio can create more problems for developers when producing assets for their apps. This is part of the problem that Android Marketplace has. Not every app can be optimized for a thousand different screens.