mussel
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The iPhone 5 will feature a bigger 4.6" Retina Display and will be launched in the second quarter.
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Inb4JrMouse
It stands to reason that a new iPhone will be released sometime later this year, Apple have been quite consistent with that so far. May not be iPhone 5 though, might just be called the new iPhone though, just like with the new iPad, or maybe "Magical, revolutionary new iPhone".
What the hell is a Retina Display?
As someone who spent far too much time reading up on iPhone rumors last year (before the 4S keynote) I highly recommend that you don't take these rumors too seriously. The 4.6" rumor is utter nonsense. The most the next iPhone display will be size-wise is 4".
If you want to read up on what to expect for the next iPhone I recommend this article. Personally I think LTE is a given and it will be released in the fall. Everything else is up for debate. I really want a 4" retina display, but who knows if Apple will give us that. I'd say there is a 5% chance that it will be larger than 4".