The iPhone 5S is based on Apple’s own 64-bit ARM A7 System on a Chip (SoC). This is a major step up in raw processing power.
Biometric authentication requires a significant amount of CPU horsepower to pull off without being sluggish, as would strong end-to-end VPN encryption, both of which are likely necessary for the iPhone to continue to attract corporate attention.
The inclusion of so much horsepower is more than just a nice win for the iPhone line. It’s also a win for the next iPad, as well as a sign that iOS platforms are stepping up in class, rivaling desktop machines and game consoles. More fodder for the folks who champion the opinion that we’ll someday see a convergence of the iOS and Mac OS X platforms. Personally, I don’t see that happening any time soon. I love my MacBook Pro and can’t imagine using my iPad or iPhone in the same way. But I do see the possibility of that changing over time.