iPhone 6 will offer a 4.8-inch screen

Following a number of rumours about Apple testing a bigger screen for the next version of the iPhone, an analyst now suggests that the Cupertino giant will indeed ship its next flagship with a 4.8-inch screen.

Jefferies & Co. analyst Peter Misek on Monday issued a research note to investors in which he reversed course on Apple. Misek wrote,

Despite still seeing risk to CQ4 and FY13 revs, we now believe better [gross margins] will allow Apple to skate by until iPhone 6 launches with its 4.8″ screen,” Misek wrote in the note. ”We est ~50% of smartphone shipments have >4″ screens and that iPhone 6 will catalyze a large upgrade cycle. The stock is attractive based on the attitude change, FY15 revs >+15%, and valuation.

While the note is more of a source backed prediction, Misek has a good record in terms of the accuracy of his calls.

The iPhone has lost significant market share to the large army of Android phones, which have grown in screen size. Apple raised the display size of last year’s iPhone 5 to 4 inches from the prior 3.5 inches, so 2014 seems about right for another bump.