A video posted by the website iPhone5parts.net examines the front panel of the forthcoming iPhone, giving detailed measurements in comparison to the iPhone 4S and noting other differences. Plus, the person testing the displays scratches both vigorously with a set of keys, with no marks at all appearing on the iPhone 5 screen but the iPhone 4S showing some scratches. This is clearly the real deal, and yet more evidence that the new iPhone will have a 4-inch display.
However, AppleInsider is reporting that suppliers are having difficulty producing enough components for the new phone, the new display in particular. As we've discussed, it will use in-cell technology, which integrates the touch panel into the display instead of being an overlay on top of it, making the phone thinner and the images sharper. But any time you use a new display technology, the yield rates are low. In other words, a high percentage of the manufactured displays are defective and can't be used. The rumor abroad is that due to low yield rates, the new iPhone will be in short supply when it becomes available. Some have suggested that Apple could delay the launch, but the latest rumors are saying that Apple will go ahead despite component shortages.
Interestingly, the new iPhone 5 is showing up in server logs, which indicates that prototypes are now in hand and are actively being test by Apple. You can read more on TechCrunch.