Apple is known for improving the iPhone experience with the launch of new iPhone versions year after year. This year looks no different if rumors are to be believed. Both hardware and software improvements are expected this year as well.

According to the latest rumors iPhone 5 is due by October. While afew analysts suggest it will be a small upgrade, some others predict that there will be a complete revamp. Although no features are official until Steve Jobs takes the stage, tech observers revel in the guessing game. Although Apple is not likely to add flash support, expandable memory and a removable battery, there are high hopes that the new device will have features that offer excellent user experience.

Here is a look at 10 inalienable components of an iPhone 5 wish list:

Powerful Capacitive Touchscreen:
Today's projection-type capacitive touch panels are becoming increasingly popular with their adoption in devices like Apple's iPhone. According to a report by the Nikkei Business Publications, Japan’s Hitachi Displays had developed a projection-type touch panel capable of detecting insulators such as plastic and cloth. The new touch panel is still a projection design, but could be operated even while wearing gloves. Users could select icons with the tip of a fingernail, input handwriting with a plastic pen, and enjoy a wide range of other input methods. In short, it overcomes the disadvantages that the technology had suffered from in comparison to resistive films, making possible multi-touch operation with both insulators and fingers.

If no 4G LTE Support, then Unlimited Data Plan:
Apple is known for making great hardware combined with simple-to-use software companion. Strong hardware with iOS 5, 4G LTE and World Phone, we have an invincible machine. However, chances of 4G LTE looks very slim. AT&T and Verizon are both going to offer tiered data plans. Hence iPhone 5 must go to T-Mobile or Sprint and bring out an unlimited data plan. 4G LTE can be sacrificed if there is an option for unlimited data plan.

Capacitive Charging:
Capacitive charging is a great option to implement but it is quite expensive. There are quite a few charging pads entering the market to solve the cable clutter issue. When compared to typical inductive charging systems, capacitive charging removes the need of coils to align. A large charging pad design would be good where the device could be placed or tossed onto the pad to get it charged. And with Apple iPhone 5 rumored to feature metal body, it would be easier to implement on future iPhone.

4-inch Display:
Now it’s time for Apple to catch up with the smartphone market norm where display with 4-inch screen is ideal. As more and more smartphones are coming up with bigger displays measuring 4.3-inch and an option to power up with HD streaming, it is imperative that next iPhone comes up with at least 4-inch retina display to stay ahead in the market.

iPhone that can act as Sensor:
There are many sensor machines available in the market. It will be good if iPhone 5 can implement sensors for temperature, pressure, humidity, EMF and a heart rate monitor along with pedometer. The more sensors it can implement, the greater the number of apps that would exploit such features.

Near Field Communication: (NFC)
NFC is going to be the future of mobile payments and it has become pretty much a necessary attribute. Google has already adopted NFC support in a few smarpthones. Even iPhone Killer Samsung Galaxy S2 has NFC support. It is expected to become a widely used system for making payments by smartphone in the United States. On January 25, 2011, Bloomberg published a report stating that Apple was actively pursuing development of a mobile payment system employing NFC. New generations of iPhone, iPod and iPad products would reportedly be equipped with NFC capability which would enable small-scale monetary transactions.

Battery Lasting 24 Hours:
Once charged the battery should last at least 24 hours. A long-lasting, high-performing battery will go a long way in making iPhone 5 smartphone appealing to greater number of people. Not many smartphones in the market last more than 10 hours with video playback but it will be good if iPhone 5’s battery can last longer.

Biometric security:
Biometric security technology protects highly sensitive information from getting into the wrong hands and also prevents unauthorized physical access to safety establishments. In the US airports, biometrics is almost the standard procedure in screening passengers. As more and more online transactions are taking place, banks and financial institutions make use of security biometrics to safeguard financial and other sensitive transactions on the net. The most obvious advantage is the enhanced safety feature compared to conventional security measures like locks and passwords. Finger prints and retina features cannot be tampered with and hence, provide fool-proof security.

Better Google Maps with Voice Recognition:
Google Maps is one of the best direction map views one can get. In certain smartphones there is voice recognition, turn by turn voice directions and a street view screenshot when you arrive.

HD Sound:
HD voice calls are amazing. However, this is not just a thing that can be applied by iPhone but the carrier must provide support for wideband audio.