According to the report, Apple declined to comment on the rumors, but CEO Tim Cook addressed the question of larger screens last month at the All Things D conference.
Cook also said the iPhone doesn't have a larger screen right now for a few reasons.
He said that a large screen today comes with a lot of tradeoffs, adding that people do look at the size, but they also look at things like if the photos show the proper color, the white balance, reflectivity, battery life, brightness, the longevity of the display.
The phone is made of a plastic casing and will come in five or six different colors.
Besides releasing a cheaper model of the phone, Apple will release the iPhone 5S later this year.
It will be an update with some small additions and tweaks. Apple released the iPhone 5 in September.