Let talk about hardware:
To have the same housing but different hardware installed inside. A new chip A7 and M7. Touch sensor for finger print scanning. Dual LED for photo taking. Better battery performance.
New chip for faster processing and graphic enhancement. As the CHAIR demo of Infiniti blade 3 which enable 64 bit of architecture design. More power for gaming.
Touch sensor for secure phone unlock and iTunes purchase. And they manage to put into the same button as you wake up your phone and unlock at the same time.
Dual LED for low light photography. No company is doing this to compensate the white balance.
3 major features with forward thinking in hardware.
iOS 7 which built from ground. Redesign everything with transparent effect. And alot more hidden features which I am not able to name them all. (Which competitor can't do it as they have a new hardware but not able to have the latest android version to go with it)
HD video recording with 120fps which is 4 times slower than the usual 30fps video. To give you more possibility to look at the same thing in different prospect.
iWork, GarageBand and iPhoto will come with iPhone 5s that give you more productivity on the latest hardware.
I do not want to compare the 2 different world here. But people like to mix them up. To have a iPhone. Is not about just the phone. Is about the whole Eco system on apple. They are connected to one another. I don't like people to compare the size of the phone. Just like comparing a woman with better body shape but not about the brain.