The company will maintain the current 4.7-inch and 5.5-inch displays but remove the headphone jack, according to sources. Sources say this will let Apple make the phone thinner and improve water resistance.
The Lightning connector will serve double-duty as a port for charging the phone and for connecting headphones, they said. KGI Securities analyst Ming-Chi Kuo said he expects the new iPhone to be one millimeter thinner than the current iPhone.
Notably, the WSJ is also confirming that Apple plans a major update for its 10th anniversary iPhone coming in 2017.
Those changes could include an edge-to-edge organic light-emitting diode, or OLED, screen and eliminating the home button by building the fingerprint sensor into the display, according to people familiar with the matter.
It's unclear if this is a temporary or permanent departure from Apple's usual ticktock cycle. Please follow iClarified on Twitter, Facebook, Google+, or RSS for updates. If you want to check out what we expect the iPhone 7 to look like, check out these renders!