Rumor has it that Apple is planning to launch a new iPhone with a bigger, better "Retina" display in the second quarter of this year. A South Korean newspaper cited anonymous industry sources for its claims that Apple's impending sixth-generation iPhone will feature a 4.6-inch display. This is much bigger than any previous iPhone which featured 3.5-inch displays.
A screen of this size would put the iPhone to a similar form-factor as the Samsung GALAXY S II and most likely put them in direct competition. A move like this could lead to outcries that it is just a bad copy of the Samsung phone, something Apple accused Samsung of not so long ago. No other details are known, but I imagine a bigger battery will be required due to the larger screen. I would also guess that it will feature a better processor such as with the iPad 3. NOTE: The picture above is an artist's impression, and is NOT an actual picture of the device.