According to Apple blog 9to5Mac, citing sources, the Cupertino, Calif.-based company is currently testing at its headquarters two iPhones -- only one of which will be released -- boasting larger displays. And although rumors have suggested the device will come with a true 4-inch screen, 9to5Mac claims it'll actually boast a 3.95-inch display.
The new iPhone's screen will be just as wide as that of its predecessor, 9to5Mac claims, but will be slightly taller, allowing Apple to add 176 pixels. The new resolution on the iPhone will be 640x1,136, according to the blog. Apple's current Retina Display on the iPhone 4S features a 640 x 960 resolution.
Although Apple hasn't confirmed it'll even launch a new iPhone, let alone what size screen such a device might have, the rumor mill has been saying for months now that the device will come with a larger display.
Last week, the Wall Street Journal reported Apple is buying 4-inch screens for its next handset. Earlier this month, Apple-focused site iLounge made the same claim 9to5Mac has, saying that the iPhone 5 will have a taller screen measuring about 4 inches.
The larger screen should help Apple make some customizations to iOS 6, according to 9to5Mac. The blog claims Apple is currently considering adding a fifth row of icons to the operating system's home screen, thanks to the additional screen real estate. It might also change the look and feel of built-in applications to accommodate the taller display.
One other tidbit from the 9to5Mac story: its sources say Apple's next iPhone will, in fact, come with the long-rumored smaller Dock connector.
CNET has contacted Apple for comment on the rumor. We will update this story when we have more information.