This would be in effect a statement by Apple that there is nothing much left to innovate in Smartphone arena. Only way to beat competition is by price difference. It used to be that every year new iPhone release was actually exciting making me crave the latest model. After 4S, new innovations have been basically faster CPU, thinner body and resolution. The improvements are on border line justifiable to be even called "incremental". And still, there are so many things left to do with Smartphones. Here is my nerdy wishlist for iPhone (please add on yours too :)):

* Ability to use phone as walkie-talkie.

* Weather sensor

* FM HD radio

* NFC chip

* Built-in programmable FPGA

* Ability to put out digital, analog signals from iPhone (turning it to Arduino)

* Higher precision gyroscope and accelerometer

* Infrared LED

* Ability to run apps in background listening mode

* Infrared 2nd camera

* RF transmitter/receiver (900 MGHz range)

* Pen input

* Pressure sensitivity

* Continuously dimmable screen (all the way to 0)