According to the macworld, there will be no home button in the next generation iPhone. On the other hand Digitimes has reported that the next iPhone will sport a 4 inch screen, and an A5 processor. The rationale for a larger screen is to combat the larger displays of rival Android smartphones.
Assuming that the workspace remains of 960 × 640 pixels , Apple could increase the height of thescreen to about 1,148 × 640 pixels (more or less, of course). Current applications exploit the conventional screen area, leaving off the pixels in excess seats in the lower part of the body or showing those elements that are currently hidden are displayed when you double-click the Home button.
It may be because sources imagines the iPhone 5 to not feature the home button because of its large supportable screen as also the same feature is seen on the latest Android devices which they only rely on full touch support screen, mostly no button has found on the devices.