Analysts - New iPhone will read your fingerprints

Apple's latest iPhone will have fingerprint authentication, a major new technology that could give the Silicon Valley giant a valuable leg up in big markets such as enterprise computing and mobile payments, analysts and industry experts said ahead of the gadget's launch Tuesday.

Apple is expected to release a cheaper version of the iPhone in different colors for China and other developing markets, alongside a high-end version that will likely be called the iPhone 5S, according toThe Wall Street Journal. USA TODAY spoke with several people familiar with Apple's plans, but are unauthorized to speak on behalf of the company.

An Apple spokeswoman declined comment.

The top-of-the-line smartphone may offer more storage, upgraded photo-taking capabilities, a better battery and a faster chip. But what gets Wall Street and tech industry insiders excited is the fingerprint technology and the possibilities opened up for Apple by secure, easy authentication of smartphone users' identities.

"Everyone is looking at what this new phone can do, and one of the key things is fingerprint authentication," says Wells Fargo analyst Maynard Um. "People are underestimating what this technology can do."

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