Apple is reported to be working on a larger iPad. It’s not clear whether this is real, but there are two things to keep in mind here: 1) this comes from Digitimes 2) the so far always-accurate Wall Street Journal has reported a similar rumor.
The important thing to remember here is that WSJ said Apple is testing such a device. Testing just means it’s some limited runs to see exactly how well this may work. If Apple’s bosses are happy with the result, we will see it. If not, then don’t expect to ever see this product. It’s a tossup at this point.
Just take it as a rumor for right now. Apple probably has some prototypes, but there is no guarantee that it will happen.