There's a new concept for you: the phablet. I came across it here.
I wonder if it's phabulous? (Sorry. I couldn't resist. :-D )
The phablet, otherwise known as a "big screen phone". Smaller than an iPad Mini, but larger than a phone. I guess about the size of some of those Android-phones I saw the other day. Definitely a bigger screen than the iPhone.
The question isn't, as the article alleges, if Apple is "losing the screen-size war". It's if Apple cares.
The iPhone has never been about ultimate screen size or memory or what-have-you. The technical specs aren't con because they generally don't matter. Where Apple wins is in user experience. It has a coherent, pleasurable user-experience. Oh I have no doubt Apple will think about responding - it's not like they don't have the technical prowess - but I'd be concerned about such a silly sideshow becoming the main attraction. That would be meaningless for everyone. I think other companies should pay attention to the one technical spec Apple does broadcast: the screen resolution. They might want to take note of how Apple has the supplier market for very high resolution screens pretty much locked up. (To the point where they can affect national industrial policies.)
For those who are thinking about getting Apple to lose this or that war - you first have to get Apple to notice you. And then agree that your competitive advantage is worth their time countering. Now, there is the whole "death by a thousand cuts" thing, but when those cuts are meandering and delivered randomly, they become quite meaningless. Apple has a strategy that other phone makers, including Google, respond to. Can Apple ignore what's going on in the cellphone market? No. But they have the luxury of being able to pick and choose how they respond. That's a pretty powerful marketing strategy in and of itself!
Samsung is doing a good job of taking on Apple. They're definitely leveling the playing field with them, and confronting them on some key technology pieces. Eventually the two behemoths will arrive at some compromise, stop suing the heck out of each other and start actually trying to out-innovate each other. (What we've seen so far is the flirting. We haven't even got to the doorway kiss.)
As for the question "is Apple losing the screen size war"? I'm not convinced it matters as much as the other phone makers want it to.