This sentence doesn’t make any sense. The cheap iPhone is apparently going to compete with premium Android models by having a larger screen.
They are different markets entirely. Their logic makes no sense. I’m not saying a cheaper iPhone isn’t coming, but I question the combination of ‘cheap and large-screen’.
Of course, this is completely forgetting the fact that it is doubtful Apple will change the screen size of the iPhone lineup for a long time anyway. In the life of the iPhone, they have changed the screen size once. Their conservatism in this area directly contradicts this latest report from Digitimes.