According to The Verge, Microsoft is currently developing the General Distribution 3 (GDR3) update for Windows Phone 8 that will offer support for Qualcomm processors and 1080p resolutions. This update is expected to arrive towards the end of this year and will set the stage for the launch of a range of new devices during the holiday buying season.
There were rumors that HTC's "Zenith" flagship smartphone would release following GDR3's release and feature a 4.7" display and quad-core processor, but these plans have now apparently been cancelled, as the device would have a lower resolution than competing Android models.
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