How exactly will Apple fit a larger screen into its next iPhone? If the latest rumor is true, it’s by making the display (and resolution) taller.

Apple is reportedly testing prototype phones with 3.95-inch displays, which are taller, but remain just as wide as the existing iPhone’s screen, 9to5Mac reports. By elongating the screen, the next iPhone could have a resolution much closer to the 16×9 movie format, which means it’ll be even easier to watch widescreen films.

The news follows reports from the Wall Street Journal and Reuters last week practically confirming a 4-inch display in the iPhone 5.

Writes 9to5Mac’s Chuck Remington: “Apple will not just increase the size of the display and leave the current resolution, but will actually be adding pixels to the display. The new iPhone display resolution will be 640 x 1136.  That’s an extra 176 pixels longer of a display.”

With that resolution, the iPhone 5 (or whatever it’s called) should still be able to boast a Retina Display. The site’s sources also say that Apple is testing builds of iOS 6 that add a fifth row of icons to the iPhone’s home screen. Additionally, the next iPhone will reportedly spot the long-rumored smaller dock connector, which should open up more room for internal hardware. 9to5Mac describes it as “between the size of a Micro-USB and Mini-USB connector.”

iPhone 5 mockup via Niilo Autio