The iPhone will have the same sized screen (3.5 inces) for some time to come. Android phone manufacturers know this so they will try to create large screened phones to one-up the iphone and draw in the crowd that want larger screens.
It will be difficult for apple to introduce a different sized idevice because of the applications. The app store will start to become fragmented and some app developers will have their hands full if they want to be current and be on all iDevices.
This is the same reason as to why I don't think there will be a 7" iPad on Q1 2011
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