Apple plans an iPhone model with a screen larger than 4½ inches measured diagonally, and a second version with a display bigger than 5 inches. Until now, Apple's largest phone has been the 4-inch display on the iPhone 5.
Both new models are expected to feature metal casings similar to what is used on the current iPhone 5S, with Apple expected to scrap the plastic exterior used in the iPhone 5C, these people said.
The WSJ says the phones are expected in the second half of 2014 and won't feature a curved display. While plans aren't final and the company could change course, the smaller model is reportedly further along in development and being prepared for mass production. The larger version is still in preliminary development, according to their source.
A recent report from China claimed that Apple has plans to launch both a 4.7-inch screen and a 5.7-inch screen iPhone. Another report from yesterday said Apple has selected a 4.8-inch display size for its new smartphone.
Back in November, Bloomberg said Apple was planning to release a 4.7-inch and 5.5-inch iPhones with displays that curve downward at their edges.
Please follow iClarified on Twitter, Facebook, Google+, or RSS for updates as more information becomes available.