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Next iPhone Could Be a ‘Bigger Upgrade Than We Expected’

A new report from analyst Shaw Wu of Sterne Agee says the new iPhone could be a ‘bigger upgrade than we expected’, according to SAI.
The site relays the two key points of Wu’s note to investors:
Checks Indicate iPhone Update Could Be Bigger Than Expected
Well, it turns out that we are picking up that this "interim" iPhone refresh in the Fall timeframe could be a bigger upgrade than we expected. We believe this keeps the iPhone fresh and competitive and helps maintain its leadership position. However, we continue to pick up indication that it will not likely incorporate 4G LTE due to battery life issues and spotty network coverage. And ironically, if anyone is in a position to fix these weaknesses, it would be AAPL.
Bigger Display
What is different is that in addition to a dual-core processor that we have talked about before, our supply chain sources indicate that it will sport a slightly larger display than the current 3.5-inch retina display that is already industry leading. We are picking up that it will retain a similar form factor and size but with thinner bezel. We believe this makes sense to improve the iPhone experience without making it too bulky as we have seen with models from competitors. We also want to highlight iOS 5 software features which we think are sizeable new upgrades including iCloud, Push Notification Center, iMessage, and Twitter integration.
Recently there have been numerous case design leaks that corroborate the report of a larger screen. Reports have suggested that it could be increased to 3.7-inches or 4.0-inches in size.
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