Competition from a host of Android and Windows Phone devices could force Apple to upgrade the display size of the iPhone 6 to 4.8-inches if rumors turn out to be legitimate. Going with a 4.8-inch iPhone device in 2014 would be a complete change of Apple's earlier tactics. It is clear the company wants to stay relevant and to do so, it wants to go big.
According to a BGR report, Jefferies & Co. analyst Peter Misek said Apple is getting prices that are more favorable from its component suppliers. This could boost Apple's bottom line, and could also allow the company to finally launch an iPhone 6 with a larger display.
"Despite still seeing risk to CQ4 and FY13 revs, we now believe better [gross margins] will allow Apple to skate by until iPhone 6 launches with its 4.8″ screen," Misek wrote in the note. "We est ~50% of smartphone shipments have >4″ screens and that iPhone 6 will catalyze a large upgrade cycle. The stock is attractive based on the attitude change, FY15 revs >+15%, and valuation."
An iPhone with a 4.8-inch display would send ripples through the smartphone industry, if Apple should ever go that route. With the competition getting more fierce each passing day, Apple might not have a choice but forget about doing its own thing and release an iPhone with a screen real estate greater than 4 inches. Still, Apple would want to be careful and not affect iOS developers with frequent hardware changes.
Bear in mind that Misek has proven himself as a reliable source when it comes to Apple-related products in the past, so there is a chance of him being correct. However, reliable sources are not always on point, thus meaning one should wait for an official announcement from Apple.
Don't expect, however, Apple to release an iPhone with a 5-inch display anytime soon though, as the company might want to reserve that size for its iPad mini line.