Apple's flagship device, iPhone 8 expected to have a sensor for face scanning and it's not only for Augmented reality. The edge-to-edge OLED iPhone screen might add 3D Laser sensing that will enable facial recognition as well as AR.
Mr Cook on his interview with Independent told "AR excites me and it has 'resonance' which allows individuals to improve the world around them but it ain't quite ready for the iPhone still few things must be discovered before that technology is good enough for the mainstream."
Rod Hall, Senior Analyst from J.P. Morgan told front-facing 3D laser scanner for focus on faces rather than eyes. Since the technology is not yet ready for Iris recognition.
Hall claims that iPhone 7s & iPhone 7s Plus including iPhone 8 could have a 3D sensing tech which might replace the Touch ID since the apple plans to take away the home button. He also pointed that increased volume of 3D laser scanner modules in Apple Supplier Chain.
Recent reports state that iPhone 8 will be $1000 priced and it keeps getting true since each scanner module might cost $10 to $15 per iPhone on production and the retail cost will nearly add up to $100 for maintaining a good profit margin.
Mac Observer pointed out "All we’ve got is a trademark for “Iris Engine,” which is a big part of why folks seem to think an iris scanner will replace Touch ID." But it also mentioned Apple hadn't filed any patents for iris scanning technology.
According to KGI Securities analyst, Ming-Chi Kuo reports "very early to examine the hardware but other biometric technologies that replace the current fingerprint recognition technology," gives credibility to Touch ID's removal.
From other rumours, Apple might include Touch ID or Bar beneath the display but if facial recognition is used either it might replace Touch ID or enable 2FA functionality.