I personally think it will be a little overwhelming to introduce a new watch on top of their expected iPhone lineup refresh in September, but then again this is Apple and they set their own rules. If you feel like you're gonna regret buying the 3 once the 4 comes out then hold off. I personally love the 3, but will definitely trade in and upgrade if we get thinner bezels
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If they make the new one incompatible with the old bands they would lose out on a ton of people who will want to upgrade. Even if they have to change the design, this doesn't have to come at the expense of band compatibility and I hope they don't make a poor decision like that.The S4 is expected to have a 15% larger display and a bigger battery to accommodate the new form factor. What this means is it will almost certainly have a different size case.
The S3 uses a very old, power hungry Snapdragon X7 LTE modem. The more current X12 modem is built on a 14nm process which employs FinFETs. This is a big reduction in power consumption.
In short, there's a lot of room for improvement compared to S3.