Apple Inc. (NASDAQ:AAPL) iPhone 5S could come equipped with a fingerprint sensor to give it an edge over other smartphones in the emerging world marketplace? Maybe. Analyst Ming-Kui Kuo of KGI Securities certainly thinks it will, and expects the Apple Inc. acquisition of AuthenTec to pay off this year in exactly this use of next generation technology.
And Apple sorely needs an edge over the competition right now. Sales remain robust, but perceptions that the brand is faltering have devalued stock greatly despite Wednesday’s rally to bring the trading price above $500 after analysts declared it hit bottom.
As rounded corners aren’t enough to brand Apple anymore according to a ruling that was handed down in Denmark on Wednesday, it appears that a change is in order for the firm to make its products stand out from all others. Being the first to implement fingerprint technology could make a huge difference in this battle, as connecting the sensor into Apple’s (AAPL) home button will be a far more intuitive design for consumers compared to the crowded multibutton displays that are part-and-parcel to other smartphone designs. If the technology ends up being difficult to copy, Apple will have a stronger position in the marketplace with the release of the iPhone 5S as Kuo predicts.
According to reports from Apple Insider, Kuo also believes that the iPad mini will gain a retina display, a less expensive iPhone 5 will feature plastic casing and that a new handset based on the iPhone 5 will be released later this year. According to the blog, Kuo also stated that the technology would integrate with some programs like Passbook in order to enhance functionality.
So how far fetched could this rumor be? It actually might not be too far off from reality, Kuo has a notably strong track record when it comes to predicting future products to be released by Apple Inc (AAPL). He made accurate calls on the company’s fall line up to include the taller design of the iPhone 5, an iPod touch, thinner iMacs, the iPad mini and the fourth generation iPad with Lightning connector.
Some problems with launching this type of technology, however, include expectations that a fingerprint sensor integrated into hardware only allows a customer to unlock a phone might not completely sate customer demand. User comments connected to this debate show that some don’t understand why the sensor wouldn’t be included on screen (therefore giving it no leg up over Android and Windows phone competition). Other Apple (AAPL) user commentary indicates that unlocking a phone is a nice feature, but unless the fingerprint sensor were exploited to allow access to multiple websites and platforms, it’s not worth biting on just yet.
Perhaps a small step toward wide implementation of fingerprint identification technology in the form of unlocking a phone is only a small first drop in the bucket when it’s compared to what the market desires. But a decision to implement it is likely to yield results just the same. With this decision Apple Inc. (NASDAQ:AAPL) would not only remain the better constructed brand of smartphone, it would also become the more secure brand.
