Rumor has it that Apple are planning to release a new 4-inch iPhone, if reports on MacoTakara are to be believed. They claim that both Sony and Hitachi have already begun preparing 4-inch LCD screens for a new iOS-based device which will be released in early 2012.

According to an Asian source, Hitachi Display, Ltd. and Sony Mobile Display Corporation started shipping 4-inch LCDs for a new iOS device and LCD for the iPad 3. These 2 companies will merge their business with Toshiba Mobile Display Co. Ltd., as "Japan Display" in spring 2012.

Japan Display, eh? The source also says something about the "basic structure" of the iPad 4 display, that will be changed "fundamentally", with a Taiwanese company providing LCD technology that faces the "decision of changing production process".

Hmm, things are heating up in the Apple world.