Microsoft is again late to the party, if the latest rumor holds any merit. According to a new rumor, Microsoft is planning to bring 1080p resolution display along with support for 5-inch screen devices by the end of 2013.

Sources speaking to The Verge said 1080p and support for 5-inch devices will make their way in the General Distribution Release 3 update (GDR3) that is aimed at hitting the scene by the end of the year. Furthermore, the update is said also to bring support for quad core processors, another late entrance for Windows Phone, as Android devices with quad core devices have been on the market for a very long time.

The rumor claims GDR3 as a pretty major update, one that will bring quite a number of new features to the Windows Phone platform. Devices with this update will launch by the end of 2013; however, it is not yet certain if current Windows Phone 8 devices owners will get the full update or whether they will be forced to purchase new handsets.

The first Windows Phone 8 update is called GDR1, also known as Portico update, which arrived in late 2012. The next new GDR2 update will not be until the coming months, so Microsoft has a ton of time to work on new features for GRD3, along with refining what is already available.

On the matter of Windows Phone Blue, the GDR3 update for Windows Phone 8 is a completely different thing. This update is scheduled for an early 2014 release date, and is aimed at bridging the gap between Windows Phone 8 and Windows 8. By combining features across the board of its main operating systems, Microsoft could make this easier for app developers and a more seamless transition for those Windows 8 users who might want to give Windows Phone 8 a shot.

By the time this update is released, Android would be way head in terms of innovation, features and screen resolutions.