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The report which comes courtesy of Macotakara suggests that Hitachi and Sony are two of the companies which have begun shipping 4-inch displays for a new iOS device.
Apple has stuck to it's 3.5 inch display for years now, while competitors have gone up to 5 inches with the Samsung Galaxy Note. While Apple has stuck to their original size claiming that they have the right size to fit the hand. Reports suggest that the redesigned device may allow the device to savor up to 4 inches of screen real estate.
So while the iPhone 4S is still fresh we wont expect the iPhone 5 until sometime later next year, so we will add this report into the rumor collection for now and await more news as it comes our way.
source - Macotakara