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Measurements suggest that the new iPhone 5 will have a 4-inch screen, as previously rumored.
The current iPhone has a 3:2 aspect ratio, but increasing this to 16:9 -- the aspect ratio used for widescreen TV and movies -- allow for a 4-inch screen to maintain a pixel density close to that of the current screen, while also allowing the screen to fit into a handset no bigger than the current iPhone.
It has been suggested too that the iPhone 5 could have a super-high-density screen.
It has been rumored that Apple will to move to a solution called in-cell technology with the iPhone 5 where both the screen and touch sensor layers combined into a single layer, as opposed to the current setup where these are two layers. The new in-cell panels are expected to be both cheaper to produce and thinner than the current panels.
Image source: ETradeSupply.