The unveiling of the new iPhone 5S, iPhone 5C, and the iOS 7 of Apple Inc. (NASDAQ:AAPL) in Cupertino on Tuesday is considered a historic event for the tech giant by Brian White, analyst at Cantor Fitzgerald Equity Research.

Apple iPhone 5S

Apple stocks to rise in 2014

White is convinced that yesterday’s event is one in a series of gatherings that will drive the stock higher in 2014, which is the year of innovation.

In a note to investors, White emphasized that the iPhone 5S with the fingerprint identification technology (dubbed as TouchID) and 64-bit A7 processor is a “gold standard.” According to him, the fingerprint identification will simplify and enhance customers’ experiences with the iPhone because it eliminates the need for entering a four-digit pin. With the technology, they can immediately use their iPhone by just touching the home button of the iPhone 5S.

He said, he will not be surprised if Apple Inc. (NASDAQ:AAPL) will also integrate the fingerprint technology into the iPad and other products in the future. He believed that the TouchID will make the process of purchasing products at the iTunes store easier.

White on fingerprint scanner

White opined, “TouchID has the potential to be used for mobile payments, password consolidation, and other new uses…We believe new innovative and creative uses for this new feature could come to life.”

He noted that Apple Inc. (NASDAQ:AAPL) considered privacy rights in integrating the technology on the iPhone 5S, because a user’s fingerprint information will be encrypted and stored in the A7 chip’s secure enclave and not on the company’s servers or iCloud.

In addition to the A7 processor, Apple Inc. (NASDAQ:AAPL) also added an M7 motion processor to improve power efficiency. The motion sensor is intended to gather data from the gyroscope, accelerometer, and compass.

iPhone’s performance improvement

“We believe the big performance improvement with the A7 is difficult to appreciate at first glance, however, we believe a 2x performance boost versus the A6 processor should provide enough of an improvement for users to notice the difference when doing a side by side comparison,” states White.

The iPhone 5S is equipped with a 4-inch retina display, 10 hours of battery talk time, an improved 8MP camera with greater sensitivity and better low light performance, and other features such as True Tone flash, Burst Mode, Slo-Mo video, and a new FaceTime HD camera.

With regard to the iPhone 5C, White said the colorful new member of the iPhone family offers more features and functionality than expected. He noted, “the price point was approximately over” their estimate, but bodes well for margins.

White agreed that the new iOS 7 is the most significant update since the introduction of the original iPhone. According to him, he was truly impressed with the aesthetics and functionality of the new operating system.