Apple and its CEO Tim Cook have been adamant about the iPhone's (relatively) modest screen size. Apple stands firm that it will not augment its screen size at the cost of usability. Tim Cook went on record during the company's March-quarter earnings call stating "our competitors have made some significant tradeoffs in many of these areas to ship a larger display. We would not ship a larger display iPhone while these tradeoffs exist."
While it would appear from Cook's latest statement that Apple has no interest in releasing a larger handset, conflicting reports suggest otherwise. According to a research note sent to clients on Tuesday, Jefferies analyst Peter Misek reports that Apple is already prepping an iPhone 6 with a larger screen that is set to launch in June 16.
According to the Financial Post, Misek also noted that the new handset will offer additional color options, an upgraded processor and camera, and a possible fingerprint scanner.
If Apple is already working on a larger display, why would the company make statements suggesting otherwise? Pending the validity of these claims, Apple's recent statements are likely an attempt to protect the company's upcoming handset the iPhone 5S. The iPhone 5S is expected to launch this fall, and unlike the rumored iPhone 6, the device will not offer a larger display. Thus, Cook's steadfast stand against the industry-wide increase of display size may be nothing more than a guise to keep consumer focus on the iPhone 5S instead of the iPhone 6.
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