not all the innovations have to do with the phone itself...
1. longer battery life
2. wireless charging everywhere
3. full version of MS office on your phone. phones are powerful enough to run it now.
4. nfc everywhere...more of an infrastructure upgrade
5. full desktop OS mode, which windows 8 has for tablets. one day we will be able to completely replace the PC with our smartphone. just link the phone to a larger screen and keyboard.
6. different form factors.
7. projecting image directly onto eyeglasses, like google glass. but it doesn't make any sense to put all the hardware inside the glasses. the glasses should just be a screen that is wirelessly connected to the phone.
8. holographic keyboard...make any flat surface into a keyboard.
9. projector screen. place tiny projector inside the phone so any glass surface can become a screen.
10. 3D screens
11. more spectrum available for wireless data...