A recent Chinese report relayed by Brightwire said that the Apple would launch an iPhone 5S and a new larger 4.8-inch iPhone 'Math' in June. Since then it's been suggested that the iPhone 'Math' is a mistranslation from the original article which may have been referring to an iPhone 'Plus' or iPhone+.
Now, DigiTimes is saying that the company is 'indeed developing an iPhone with a bigger screen' but it won't be launching this year. Instead, Apple will reportedly release two iPhones that use in-cell touch technology.
However, the sources noted it is still yet to be determined if Apple will have adequate supply of in-cell touch panels in 2013 for a lower-cost version of the iPhone due to mass production issues from the technology in 2012. The iPhone 5 took a hit in sales during 2012 as a result of poor yields for in-cell technology, but the sources are now saying those yields are improving.
iPhone shipments are expected to reach 37 million units in 1Q13, 20 million of which are for the iPhone 5. In 2Q13 iPhone 5 shipments are expected to drop to 18 million.