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The Wall Street Journal reports that production of the new screens is to begin in June and that they will measure four inches across - as opposed to 3.5in on the current iPhone 4S.
Apple has never before changed the screen size on its iconic product, partly because late CEO Steve Jobs was strongly opposed to the idea.
But now the company appears to be responding to the challenge from competitors such as Samsung's new Galaxy SIII smartphone.
The next iPhone - which may or may not be called the iPhone 5 - has also been reported to be likely to sport a fancy new "liquidmetal" case.
What do you reckon? Does the iPhone need a bigger screen? Comment below...