I think there will be no bezel, it will be a glass wrap around in line with patent applications that came out in the last year. In addition their pixel bending patent allows them to gain back altogether 3/8" (.375"). So they would only ned to expand diagonally .325". So without a bezel, this would be even less of an increase than the minor one shown earlier in the comments by the overlay with a bezel. It will be a beautiful sapphire glass enclosure all around, or according to another patent, shaped to snap into possibly a metallic back, probably aluminum.
It can be an amazing piece if Apple's patents are able to be implemented in this next upgrade. I would think it would take years for competitors to match. Can't imagine Apple investing so heavily in the sapphire plants if they weren't gearing up for manufacturing.
But, that being said, why the assumption that there won't be now 3 iPhones in the lineup.
- iPhone 5C replaces the 4 and 4S and is priced at the 4 level. ($0 with contract)
- iPhone 5S stays as the high-end 4" (16GB $99, 32GB $199)
- iPhone 6 becomes the luxury market piece for an additional $100. (Sapphire, A8, longer battery life, higher memory) (32GB $299, 64GB $399, 128GB $499)
I think the 5.5" rumored device will actually be called an iPad Touch with built in LTE option so it can also be used as a phone or just with a data plan. Maybe replacing the iPod Touch (Or, the iPod touch with an upgrade simply becoming the iPod.) Starting price without LTE would be 299.