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TUAW has a really interesting piece today explaining why it thinks it's unlikely Apple will be releasing an iPhone with a 4-inch-display this year. Writer Chris Rawson says that while it is physically possible for Apple to keep the current 3:2 aspect ratio with a 4-inch screen, simple mathematics mean that the iPhones screen would then completely cover the phones front faceplate. And if Apple tried to solve that problem by making the iPhone 5 wider, it would still mean that the PPI (pixels per inch) value would have to drop to around 289 ppi, in order to maintain the same 960 x 640 pixel dimensions with the new 4-inch screen, which would then be below the Retina Displays 326 ppi, and barely a Retina display at all, in fact.
To maintain 326 ppi, the pixel dimensions on a hypothetical 4-inch, 3:2 screen must increase to the neighbourhood of 1080 x 720, plus or minus a few pixels, says Rawson.
If that happens, it would cause all sorts of extra problems for app developers, he writes, before going on to explain why other aspect ratios such as 4:3 wouldnt work either. Basically, its a very lengthy but convincing argument as to why a 4-inch display is not likely to happen anytime soon, especially as most people are happy with the current iPhone screen size. Check out the whole thing and see what you think.
Source: TUAW The 4-inch iPhone display: Doing the math, via MacStories