A Citigroup analyst is speculating that the iPhone 7, which is expected to be released next year, will include higher resolution displays and a higher level of megapixels for the camera, among several other features.

According to Barrons, Citigroup analyst Jim Suva says Apple's decision to upgrade the display of the iPhone 7 responds to rivals' moves.

"We note recent flagship phones from Samsung, LG and HTC have QHD display with 2560 x 1440 pixels. We expect Apple to also update their display resolution in the next generation iPhone 7," he wrote in a note, according to Barrons.

The iPhone 7 camera will also be much improved over previous models, he said.

"We expect the iPhone 7 to make additional improvements in camera hardware (12 MP for image sensing), in addition to software improvements," Suva wrote in his note.

Further, the analyst also expects the iPhone 7 to offer a slimmer camera module, more LTE wireless bands, improved battery life, an eye-tracking sensor and be waterproof.