Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Rebecca Zisser/Axios

While the broad outlines of the new iPhone are now widely known, both literally and metaphorically, some of its new features have to be seen to really be appreciated, sources said. That's especially true with the facial recognition that serves as the primary means of logging into the new iPhone.

The bottom line: Those who have seen the technology say it is light years ahead of anything that has been tried commercially. A good parallel is the Touch ID fingerprint reader Apple introduced with the iPhone 5s in 2013. There had been fingerprint sensors on phones before, but none with the speed and accuracy Apple introduced. Now Apple is doing the same for faces.

The iPhone's new facial recognition feature is the result of several years of evolution of the technology Apple acquired with its 2013 acquisition of Israeli 3D sensor company PrimeSense. At that point the technology was designed for larger devices and could detect bodies and body parts, but under Apple its capabilities have vastly expanded. Apple's face recognition technology makes use of several sensors on the front of the iPhone, as previously reported by Bloomberg.

Unlike the glitch-prone facial recognition technologies that are out there, such as the iris reader on the Samsung Galaxy S8, the facial recognition on the new iPhone has been trained to seamlessly handle things like eyeglasses and easily adjust to changes in appearance such as beards and mustaches, sources said. It's also extremely fast. And no, it's not likely to be fooled by a photograph, sources say.

The challenges: While Apple has been testing the technology against a wide range of skin tones and changes in appearance, real world conditions will surely throw things the technology can't handle. And Apple needs the technology to work as advertised if it is to replace its rock solid Touch ID as a means of unlocking an iPhone and authenticating Apple Pay purchases.

Apple has been testing the technology with some of its own employees but when it gets into the real world there will surely be issues that haven't cropped up in internal testing,.

There are other limits, including a few particularly tough lighting conditions and how far the phone can be from the face.

Timing: That's Apple's other big challenge: getting this new phone to market. The new iPhone, unlike the incremental updates to the iPhone 7, incorporates a bunch of new technologies. In addition to the face recognition, there is also the fact Apple is switching to a new screen technology and having the screen go nearly edge to edge on all sides. That makes for a much more complex manufacturing process.

As a result, the new iPhone may ship a month or more after the other new iPhones. That poses a tricky situation for both Apple and its customers. The company faces the risk that too many customers want to wait for the new model, freezing sales of the other models. At the same time, those who opt for the evolutionary upgrades may quickly develop buyer's remorse upon seeing the more radically improved model.

All three phones are expected to be introduced at a Sept. 12 event, along with updates to Apple Watch and Apple TV.

Go deeper

Democrat Mark Kelly sworn in to U.S. Senate

Photo: Courtney Pedroza/Getty Images

Astronaut Mark Kelly (D) was sworn in to the U.S. Senate on Wednesday after defeating incumbent Sen. Martha McSally (R-Ariz.) last month for the seat once held by the late Sen. John McCain.

Why it matters: Kelly's swearing-in by Vice President Mike Pence narrows the Republican majority and moves the Senate balance to 52-48.

Senate Armed Services chair dismisses Trump threat to veto defense bill

Sen. Jim Inhofe. Photo: Anna Moneymaker/Pool/AFP via Getty Images

Sen. Jim Inhofe (R-Okla.), chair of the Senate Armed Services Committee, told reporters Wednesday that he plans to move ahead with a crucial defense-spending bill without provisions that would eliminate tech industry protections, defying a veto threat from President Trump.

Why it matters: Inhofe's public rebuke signals that the Senate could have enough Republican backing to override a potential veto from Trump, who has demanded that the $740 billion National Defense Authorization Act repeal Section 230 of the Communications Decency Act.

Scoop: Uber in talks to sell air taxi business to Joby

Illustration: Sarah Grillo/Axios

Uber is in advanced talks to sell its Uber Elevate unit to Joby Aviation, Axios has learned from multiple sources. A deal could be announced later this month.

Between the lines: Uber Elevate was formed to develop a network of self-driving air taxis, but to date has been most notable for its annual conference devoted to the nascent industry.