iPhone 5S is making waves in the market, notching up record sales in the first weekend. However, the real game changer from Apple may still be in the offing.

Apple is said to be working on an iPhone with a 4.8-inch screen, a 20% increase in screen size from the iPhone 5S, iPhone 5C and iPhone 5.

Earlier reports by The Wall Street Journal reported the next iPhone will have a 4.8-inch display. WSJ has also reported that Apple is simultaneously testing an iPhone with a 6-inch screen.

Jeffries analyst Peter Misek has issued a research note to investors where he cited supply chain sources in China claiming that Apple will unveil an iPhone with 4.8-inch screen. This model is scheduled to be launched in September next year and will be named iPhone 6, said Misek.

His sources also said that Apple is getting favourable pricing for components from suppliers. He also raised his rating for Apple shares from Hold to Buy, increasing the price target from $450 to $600.

Misek in his research note wrote, "We think the 85 million iPhones eligible for an upgrade when the iPhone 6 launches (we think Apple is targeting Sep 2014) could be boosted by another 5-10 million from people who skipped the iPhone 5S/5C cycle."

He also revealed that iPhone 5C is facing weak demand in the market. Thus, Apple has slashed manufacturing volumes of the cheaper model from 30 million to 15 million.

BdST 2036 HRS, OCT 8, 2013
Edited by: Sabbin Hasan, ICT Editor