Most people speculating about iPhone 5 specifications believed that the next Apple iPhone will feature a 4-inch display screen to compete with major smartphones in the market.

However, the latest iOS 5 beta 7 released for developers has revealed a picture of iPhone 5 based on Photo Stream icon featuring a 3.7-inch screen. In what appears to be the most believable iPhone 5 rumor to date, the next generation iPhone features a rectangular home key, which differentiates itself from iPhone 4’s circular home key. Apart from featuring a bigger screen, iPhone 5 looks slimmer in comparison with iPhone 4. In fact this is the second time that 3.7-inch display rumor has gained credibility and most probably this should be the next generation iPhone.

Recently, Italian blog MacityNet posted what seems to be an extensive set of photos of a purported iPhone 5 case. Case manufacturers have dropped hints iPhone 5 specs, but their track record is far from perfect. The new iPhone 5 case design showed that the next iPhone is expected to have more resemblance to the iPod touch than the iPhone 4. Also the edges and curves align with iPad 2. And one of the most interesting features the case reveals is that the iPhone 5 is expected to be taller and wider than iPhone 4, which clearly shows that Apple has definitely increased the screen size for the next unit.

Apple's purported move to introduce a 3.7-inch screen is a surprise given that major smartphone manufacturers have been releasing smartphones with larger screens ranging from 4 inches to 4.7 inches in the past two years. Motorola, Samsung and HTC have all introduced smarpthones with 4.3-inch size, establishing a trend. The best-selling phones like Samsung Galaxy S2, HTC Sensation 4G, Samsung Droid Charge, HTC Thunderbolt, Motorola Photon 4G and even the highly anticipated Motorola Droid Bionic feature a 4.3-inch screen. Maybe Apple believes that customers consider smartphones with 4.3-inch screen too big. Or there must have been an internal survey within Apple users which convinced it to stick to smaller screens. It can't be said with certainty what made Apple go for a smaller screen, but smaller display will be a treat for loyal Apple users who believe that Apple brings the best.

While digging through files in the recently-released sixth beta of Apple’s upcoming iOS 5 mobile operating system, some enterprising users have found hints that suggest LTE support may be arriving on Apple’s devices soon. Apple offering LTE is still a doubtful issue as Apple would not like to compromise on the longevity of battery. But for sure, unless Apple is certain that an innovation will offer superior result, it would not go ahead with it.