I hope they are able to build a phone which sells on the play store (unlocked) for $399. Then they will drop the current Galaxy Nexus down to $249 and make it the value offering.
To achieve that I believe they will need to stay pretty conservative while at the same time making significant improvements over the current Galaxy Nexus:
S4 Dual Core (it will be nearly a year old, discount!)
2GB RAM (GNex had 1, and everyone knows RAM is cheap these days)
32GB Storage (GNex had 16 & 32, lets make the base 32 this year)
8MP Camera w/ BSI & Instant capture (To bring it on par, but not ahead of 2012 phones)
1.3 or 2 MP FFC
NFC
The above should give nearly "twice as good" specs to everything in the Galaxy Nexus without spending a lot of cash on parts because they have been in production for a while and so their costs are all falling.
The items below are a little be less obvious to me:
Screen - They have been on AMOLED for quite a while now, and in the GNex they took screens to the next level. However I don't know what "the next level" is from the S3 or how much it will cost. I would expect something similar to the S3 or One X. Don't expect them to push the limit on screen again this time.
Radios/Carriers - the S4 (Krait) chip is famous for supporting nearly every air interface you could ask for on chip. I would expect this phone to show up in GSM HSPA+, GSM+LTE, and CDMA+LTE variants. The HSPA+ would be the Play Store / International phone and the others will get bastardized (just a little bit
) by carriers. A big question mark for me is if this one will go to VZW - after the botched launch and subsequent bad press for slow updates big Red may be off the table especially with Google now selling phones direct to customers which flies in the face of the strangle hold the carries currently have on the US market.
Manufacturer - Initially I thought it was a toss up - both Samsung and HTC have implemented S4 phones with great screens and built quality. However; if Google wants AMOLED display tech they will go with Sammy because Sammy will give them a discount if they buy the whole package from them (like a bulk discount!) because Samsung makes the AMOLED displays. If they went HTC I'd expect an IPS screen but since HTC doesn't build screens they are probably coming from LG and it would depend on cost. Also Sammy uses the plastic bodies which is going to be cheaper than HTC's fancy metal / oxidized..blah blah blah. So after some thought it think to hit the price point they want its going to be another Samsung build.
Battery - keep in mind Krait S4 chips are more power friendly than the chips from 2011 (28nm vs 45nm). This means at the same size you should get 10 - 20% more battery life out. I would like to see one in the 2100mah area and forget about selling everyone an OEM extended battery...but that's not going to happen and here's why. The GNex's OEM extended battery was sold to f'ing everyone who bought a GNex. Seriously - find me someone who has a Gnex and didn't grab the extended batt. Samsung/Google saved money with the smaller included battery and then cleaned up by charging those crazy OEM prices for a slightly bigger one. Expect the same thing this time around as we are talking about sticking to a price point and Samsung likes to make fat stacks of money. Expect the stock battery to be 10% bigger than Gnex and still have an extended battery option which is another 15-20%. Still, with the improvements in SoC, you should be looking at 25-30% better life than the GNex which is a nice bump.
Pogo Pins - please keep these! We the consumer love wireless crap. We keep hacking phones to work with the Palm touchstone. Keep throwing these lovable pins in! However if they are REALLY close on making the budget, they could get dropped to make their price point.....
No LED - didn't have one on past models, won't spring the money for one now
No SD slot (if it wasn't obvious) - didn't have one on past models, won't spring the money for one now
No HDMI - but if we're lucky they will keep the MHL functionality
No hardware keyboard - sorry but thats SOOO 2010. People got to learn their soft typing or give their money to RIM hahaha.
That about wraps it up - what do you think?