What "Killer Feature" Can We Expect from the iPhone 5S?

Morgan Stanley analyst Katy Huberty was on CNBC "Fast Money" this afternoon, and suggested that the iPhone 5S will have a "killer feature" that will differentiate the phone and "drive consumers increasingly to the platform". 

We've previously suggested that the iPhone 5S will need to be a substantial improvement over the iPhone 5 - which, we believe, will get a new plastic shell and will become the new multicolored "low-cost iPhone". 

Because if the iPhone 5 is $350 without a contract, why buy a 5S?

So, what will be the "one more thing" that sets the iPhone 5S apart from the low-cost iPhone? (And, for that matter, from the Samsung Galaxy 4?)

It can't *just* be a bump in processor speed. We expect that. 

We also expect an improved camera. 

iTunes Radio? While "iRadio" is almost certainly going to be introduced with iOS 7 and the iPhone 5S, it would NOT make sense for iRadio to be a 5S exclusive. 

The iRadio economic model (low-royalty targeted streaming, driving download sales) requires Apple to put iRadio into as many hands as possible. And the iPhone 5 can certainly handle the software. Frankly, the iPhone 4 could. 

How about a fingerprint scanner? Apple purchased the necessary technology back in July 2012, when it acquired AuthenTec for $346 million. Apple's certainly rich, but it's unlikely that they'd spend a third of a billion dollars without a plan to utilize the tech at some point. 

Built-in Wireless Charging? Now THAT would be a difference-maker! But Apple just filed their patent for near-field magnetic resonance (NFMR) charging. It would be a pretty quick turnaround to have it ready for 2013 iPhone 5S. 


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