iPhone 5 with 4-inch screen reportedly arriving in March

Latest reports say the upcoming device will have a 4-inch LCD touch screen, an increase of 0.5 inches on the current iPhone 4S, which confirms rumors that Steve Jobs was working on a “radical redesign” of the iPhone up until shortly before his death in October.

Citing reliable sources, Japanese blog Macotakara claims that Hitachi Displays and Sony Mobile Display will merge with Toshiba Mobile Display to form Japan Display in the spring of 2012.

The site also writes that the two companies have begun shipping the displays for a “new iOS device” and they are also said to be working on screens for the iPad 3.

Earlier this month, iLounge reported that the iPhone 5 will be 8mm longer and it will have an aluminium metal case.

Japanese publication Nikkei Business now writes that the iPhone 5 and iPad 3 will also feature LTE 4G technology.

LTE stands for “Long-Term Evolution” and it ensures higher download and upload speeds compared to 3G technologies. However, it currently causes short battery life, an issue Apple promised to address in the near future.

In addition, the Cupertino company is said to be adding NFC (Near Field Communications) to the device next year.

The current smartphone market only has about 10 percent adoption of NFC technology but Apple plans to increase the adoption from 10% to 50% in the span of a few years.

Reports also anticipate that the number of NFC-based mobile wallet users will grow to 594 million in 2016.