The much anticipated fingerprint scanning feature could be in Apple's iWatch as well as its iPhone 5S mobile phone.
Rumours are circulating that the technology expected to be in the company's next iPhone to be released this year may also be in its smartwatch.
Analyst Brian White was visiting China when he got talking with a component supplier who told him a few industry secrets.
Mr White then went and told clients of Topeka Capital Markets and AppleInsider picked up on this. He explained that the technology will be used for "essential security purposes" like credit card payments.
The analyst also expects, to no surprise, that the fingerprint feature will be the main selling point for the iPhone 5S.
He also said the technology will be in other gadgets from the company like the iWatch, which he estimated could be on the market this year.
Another analyst Ming-Chi Kuo sent rumours flying when he said Apple plans to embed the scanner behind the home screen button. He said the technology would enable the company to remove passwords and allow customers to authenticate themselves with this more secure method.
Posted by Claire Marshall