It comes as no surprise that Apple is working on releasing a new iPhone that has a larger screen when you consider the competition. Samsung and others have been making larger phones for years, while the iPhone has only just now increased to 4 inches. Recently obtained internal slides show exactly why they are finally making the decision to move forward.
According to the slides, they have done research that found consumers simply have no interest in paying more than $300 for a phone that is only 4 inches. People purchasing phones want larger screens, but they also want to pay less for them than Apple has traditionally charged.
This also comes amongst criticism that Apple could easily charge much less for their iPhones, while still making huge profits. The devices are not expensive to produce, but Apple has an interest in keeping their profit margins very high. This means they can either charge less for the phones, or they can start producing larger phones at the same price. In either case, they are going to have to soon release a new iPhone that has a larger screen if they are going to maintain their growth, or even their current sales numbers, in the future.