Larger Screen
Its 4-inch screen display is the most noticeable feature of the new iPhone. Its resolution is 1,136x 640 pixels which Apple calls the retina display.
LTE Connectivity
iPhone 5 is the first iPhone with LTE Connectivity and will work hand in hand with AT& T, Verizon and Sprint and many others across the globe.
The 30-pin dock connector that comes together with any Apple product is now obsolete, currently they are now using a much smaller lightning connector it is 80% much smaller than the old connector, which means you can't use your old iPhone accessories unless you have the Apple's $29 adapter.
Thinner Design
The iPhone 5 is much lighter and thinner, it is only 0.3 inch thick, which means Apple was able to shave off a couple of millimeters of thickness.
A6 Chip
iPhone 5 is using a new processor the ARM- based Apple A6. This processor is twice fast as the A5 chip on iPhone 4S and has twice graphics performance.
EarPods
Throw away those horrible earphones because Apple has now something new for you, it is called the EarPods that have a ported design for deeper bass.
Enhanced Siri
Siri on iPhone 5 is now capable of launching apps and understand things. Siri can even post and share on Twitter and Facebook for you.