Every year, the iPhone rumor mill cranks up to full-steam, churning out tidbits of unconfirmed reports about Apple’s next-generation smartphone. Apple’s next iPhone should be arriving sometime soon. Here’s everything we can (likely) expect from the fifth-generation handset.With an estimated 35 percent of US customers reportedly planning to buy the next iPhone.Here are 8 new features iPhone 5 must possess in order to defeat its rivals.

1.Bigger screen
Given that more and more Android phones has been released with a 4,3” display, Apple needs to graduate from its current 3.5-inch display to at least a 4-inch edge-to-edge retina display.
It's a shoe-in that the new phone will have a bigger screen.  The question is whether or not they will also make the home button touch instead of an actual button.  That is probably also the only way to fit a bigger screen onto the device without increasing its current physical size.

2.Faster, beefier processor
It isn't a surprise to hear that the iPhone 5 will have a better processor than the iPhone 4, since every major iteration of the phone has enjoyed this kind of upgrade under the hood. The A5X processor already struts itself inside the new iPad . Including that same processor on the iPhone 5 would give the smartphone considerable power, catching it up to the capability of the iPad itself.