Apple’s latest budget iPhone model, the iPhone 16e, which started shipping on Feb. 28, 2025.
Apple
With the release of its new iPhone 16e, which started shipping on Friday, Apple is taking a break from fingerprint technology as a biometric security feature in its smartphone line-up. But the separation may only be temporary.
In a move that underscores the tech giant’s ongoing commitment to facial authentication technology, Apple’s new phone for more budget-conscious consumers will offer Face ID instead of fingerprint scanning technology, dubbed Touch ID.
“It’s the most effortless way of authenticating,” said Joe Palmer, chief innovation officer at iProov, a global technology company focused on biometric verification and authentication. If you think about how many times you unlock a phone in a day, even if it takes you a second and you’re unlocking the phone 100 times a day, it adds up, he said. “I don’t think we’re going to see an evolution beyond face anytime soon,” he added.
Still, technology and cybersecurity professionals say fingerprint scanning technology has plenty of life left — and Apple itself is likely to offer the option in future device releases, including smartphones.
Here’s what consumers need to understand about the latest biometric trends in smartphones, and what’s likely to come next:
Why fingerprints could still make a comeback
Apple’s Touch ID continues to be available in certain iPad models, and the company is likely to reintroduce the technology in subsequent versions of its smartphones, according to experts consulted by CNBC. One sign they point to that makes this likely: The company was granted a patent several years ago for under-display fingerprint reading technology and continues to work on improvements, according to several published reports. As a result, the company is likely to bring back Touch ID to smartphones once it perfects its version of under-the-screen technology.
Apple declined to comment.
Consumers like choices, Palmer said, offering the example of a colleague who uses facial authentication to unlock an Android phone and fingerprint technology to authorize payments. Once Apple introduces fingerprint technology under the screen, it will likely be available in flagship phones again and work its way down through the models, he said.
Why Apple is focusing on facial authentication for now
Apple’s near-term move away from fingerprint technology in its smartphones makes sense for several reasons. For one, the company has always had a larger facial recognition culture, in part because its technology is solid and easy to use, said Roger Grimes, an analyst at KnowBe4, a security platform provider.
It’s designed to automatically adapt to changes in user appearance, such as wearing cosmetic makeup or growing facial hair. It’s also designed to work with hats, scarves, glasses, contact lenses and many sunglasses. The company designed the technology to work indoors, outdoors, and even in total darkness. With iPhone 12 or later, Face ID also works with face masks.
The move away from Touch ID on smartphones is also an attempt to appeal to customers who want more screen space on their devices, technology professionals said. In past phone versions, Apple’s Touch ID fingerprint sensor was integrated into a phone’s home or power button. Whereas the iPhone 16e — similar to the iPhone 10 — has a notch, a physical area on its display for sensors. This design element has been used in smartphones for several years to accommodate front-facing cameras and microphones while meeting consumer demand for larger edge-to-edge screens. “Apple has been slowly trying to remove the home button from phones for many years to get the edge-to-edge experience where the entire phone is a screen and there’s no wasted space,” Palmer said.
Thumb tech is cost-effective
Fingerprint technology continues to be available on Android devices, and that’s not likely to change anytime soon, even as newer phones offer facial authentication as an option, said Jean Fang, senior consultant for biometrics and authentication at Fime, which offers consulting and testing services to the payments industry.
Face Unlock is available on Pixel 4 and Pixel 7 or later Pixel phones, including Pixel Fold, according to Google’s website. On Pixel 8 and later, consumers can use Face Unlock to verify their identity when they sign into apps or approve a purchase. The face recognition feature can be used on Galaxy phones or tablets to unlock the device and verify the user’s identity in certain apps, according to Samsung’s website.
Even as more devices adopt facial authentication, fingerprint technology will remain a solid option for many phone users, technology professionals said. For one thing, fingerprint scanning is more cost-effective than other options such as iris or palm scans. “It’s a very good technology and it’s very mature and we have fingerprint sensors that are affordable everywhere,” said D. J. Lee, a professor in the department of electrical and computer engineering at Brigham Young University.
“It works the way we need it to work most of the time,” said Grimes.
Biometric security limitations
To be sure, there are downsides to popular biometric options. Fingerprint authentication doesn’t always work properly, if, for example, a person’s finger is wet or chapped, or the sensor can’t detect an exact match for another reason. But facial authentication technology also has drawbacks, especially as deepfake technology advances, said Fang, who is also a member of the Secure Technology Alliance, a not-for-profit, multi-industry association focused on identity, access and payments. There can also be limitations on how well facial authentication works depending on factors such as lighting and whether the person had facial surgery such as a nose job or eyebrow lift, she said.
“It can be a good feature for some lower-risk cases, but not all cases,” Fang said.
Despite the limitations of existing biometric modules, fingerprint and face authentication technology are expected to be the go-to biometric methods for the foreseeable future. That’s not for lack of testing of other methods, but for more practical reasons. About 15 years ago, Grimes participated in a product test that tried to identify users by smell, which seemed to work well until the test subjects ate a lot of garlic or drank alcohol. “It turned out a lot of people really liked garlic and that would overwhelm their scent and you have a lot of people that drink a lot,” he said.
While it’s possible to authenticate users through other biometric methods, like iris or palm scans — Amazon Whole Foods’ stores palm payments tech being a recent example — in many cases these may cost more and add more friction for users, making widespread adoption less likely. “It’s the balance between security, the convenience and the cost,” Lee said.
Synopsys logo is seen displayed on a smartphone with the flag of China in the background.
Sopa Images | Lightrocket | Getty Images
The U.S. government has rescinded its export restrictions on chip design software to China, U.S.-based Synopsys announced Thursday.
“Synopsys is working to restore access to the recently restricted products in China,” it said in a statement.
The U.S. had reportedly told several chip design software companies, including Synopsys, in May that they were required to obtain licenses before exporting goods, such as software and chemicals for semiconductors, to China.
The U.S. Commerce Department did not immediately respond to a request for comment from CNBC.
The news comes after China signaled last week that they are making progress on a trade truce with the U.S. and confirmed conditional agreements to resume some exchanges of rare earths and advanced technology.
The Datadog stand is being displayed on day one of the AWS Summit Seoul 2024 at the COEX Convention and Exhibition Center in Seoul, South Korea, on May 16, 2024.
Chris Jung | Nurphoto | Getty Images
Datadog shares were up 10% in extended trading on Wednesday after S&P Global said the monitoring software provider will replace Juniper Networks in the S&P 500 U.S. stock index.
S&P Global is making the change effective before the beginning of trading on July 9, according to a statement.
Computer server maker Hewlett Packard Enterprise, also a constituent of the index, said earlier on Wednesday that it had completed its acquisition of Juniper, which makes data center networking hardware. HPE disclosed in a filing that it paid $13.4 billion to Juniper shareholders.
Over the weekend, the two companies reached a settlement with the U.S. Justice Department, which had sued in opposition to the deal. As part of the settlement, HPE agreed to divest its global Instant On campus and branch business.
While tech already makes up an outsized portion of the S&P 500, the index has has been continuously lifting its exposure as the industry expands into more areas of society.
Stocks often rally when they’re added to a major index, as fund managers need to rebalance their portfolios to reflect the changes.
New York-based Datadog went public in 2019. The company generated $24.6 million in net income on $761.6 million in revenue in the first quarter of 2025, according to a statement. Competitors include Cisco, which bought Splunk last year, as well as Elastic and cloud infrastructure providers such as Amazon and Microsoft.
Datadog has underperformed the broader tech sector so far this year. The stock was down 5.5% as of Wednesday’s close, while the Nasdaq was up 5.6%. Still, with a market cap of $46.6 billion, Datadog’s valuation is significantly higher than the median for that index.
A representation of cryptocurrency Ethereum is placed on a PC motherboard in this illustration taken on June 16, 2023.
Dado Ruvic | Reuters
Stocks tied to the price of ether, better known as ETH, were higher on Wednesday, reflecting renewed enthusiasm for the crypto asset amid a surge of interest in stablecoins and tokenization.
“We’re finally at the point where real use cases are emerging, and stablecoins have been the first version of that at scale but they’re going to open the door to a much bigger story around tokenizing other assets and using digital assets in new ways,” Devin Ryan, head of financial technology research at Citizens.
On Tuesday, as bitcoin ETFs snapped a 15-day streak of inflows, ether ETFs saw $40 million in inflows led by BlackRock’s iShares Ethereum Trust. ETH ETFs came back to life in June after much concern that they were becoming zombie funds.
The price of the coin itself was last higher by 5%, according to Coin Metrics, though it’s still down 24% this year.
Ethereum has been struggling with an identity crisis fueled by uncertainty about the network’s value proposition, weaker revenue since its last big technical upgrade and increasing competition from Solana. Market volatility, driven by geopolitical uncertainty this year, has not helped.
The Ethereum network’s smart contracts capability makes it a prominent platform for the tokenization of traditional assets, which includes U.S. dollar-pegged stablecoins. Fundstrat’s Tom Lee this week called Ethereum “the backbone and architecture” of stablecoins. Both Tether (USDT) and Circle‘s USD Coin (USDC) are issued on the network.
BlackRock’s tokenized money market fund (known as BUIDL, which stands for USD Institutional Digital Liquidity Fund) also launched on Ethereum last year before expanding to other blockchain networks.
Tokenization is the process of issuing digital representations on a blockchain network of publicly traded securities, real world assets or any other form of value. Holders of tokenized assets don’t have outright ownership of the assets themselves.
The latest wave of interest in ETH-related assets follows an announcement by Robinhood this week that it will enable trading of tokenized U.S. stocks and ETFs across Europe, after a groundswell of interest in stablecoins throughout June following Circle’s IPO and the Senate passage of its proposed stablecoin bill, the GENIUS Act.
Ether, which turns 10 years old at the end of July, is sitting about 75% off its all-time high.
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