An update "before the end of the year" will allow manufacturers to build 5-inch (or larger) phones with 1080p displays, on par with rival operating systems. WP8 currently supports up to 720p resolution.
The update will be "General Distribution Release (GDR3) for Windows Phone," and will likely be in place before the holiday season, allowing OEMs to build devices in time for their busy season.
Additionally, the GDR3 update will add support for more Qualcomm processors, including quad-core.
Written by: Andre Yoskowitz @ 10 Apr 2013 8:15