Presumably due in the second half of 2014, two new models would feature 4.7 inch and 5.5 inch displays, significantly larger than the iPhone 5S display of 4 inches.
The new phones are also said to feature curved glass similar to the recently announced Samsung Galaxy Round. A move to curved displays could mean Apple is intending to utilise OLED displays in future models of the iPhone, as opposed to the LED displays they incorporate currently.
In addition to the larger iPhones, Apple is reported to be working on pressure sensitive displays capable of detecting hard or soft touch inputs, however this feature is considered to be early in development and unlikely to see incorporation into an iPhone until 2015.
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As is usually the case with these kind of rumours, Apple is so far declining to comment, however these larger displays are thought to a response to the extremely positive sales of the Samsung Galaxy Note 3, which moved over 5 million units in its first month on the market.
It is understandable Apple would be eager to compete with Korean based Samsung, as the tech giants reportedly managed to ship more smartphones than all of its top rivals combined for the second successive quarter this year.