There have been a lot of rumours thrown around about the screen size of the iPhone 5 it is most likely that the new screen will be 4 inches according to all the rumour sites and there are some pretty solid sources now.
The new screen is rumoured to be perfect for the widescreen ratio of 16:9 with the resolution of 1136×640. Mac rumours have made a video of what this should look like and it’s pretty good.
They are quoted as saying:
The video shows how the new 4″ Home Screen would look. The extra space would naturally allow for larger app folder sizes. Games and other apps would have to be modified to take advantage of the extra real estate. We imagined, however, that existing apps would be “letterboxed”, simply leaving empty black space at the top and bottom of the larger screen. Apple used a similar approach when supporting iPhone apps on the iPad.