The next iPhone 5 has at various times been rumored to include LTE connectivity, larger display, a quad-core processor, new design and much more. However, what has been overlooked is that the important feature for the iPhone 5 may not be hardware-related.

According to the latest report by PC Mag, while the hardware is an important aspect of the iPhone 5, it may not be the determining factor as far as consumers are concerned. The report points out that while Siri is being challenged by other voice recognition products, such as Google’s Majel or Evi, it’s possible that Apple will come up with yet another software innovation for the iPhone 5, with one suggestion being Kinect-style motion recognition software.

The success of the iPhone 4S also shows that Apple's secret success formula is not the hardware as much as software. The 4S had some industry-leading hardware features, such as a very sharp camera and a high-density screen, though it lagged in some ways, such as not including the speedy 4G. While experts criticized some of the features and specs that were lacking on the iPhone 4S, customers were not so bothered as many saw the Siri software as the crucial factor.

The sales failure of stock Android tablets in the North American market shows the strength of Apple's software and also services strategy. Many competing tablets match or exceed the iPad 2's hardware specs. But they do have troubles getting their tablet apps to consumers.

So there is a high probability that the feature that will clinch the deal for the iPhone 5 will be software-related.

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