The differentiating factor of the Apple rumor is not the “no home button” feature but that the fingerprint sensor would be built into the phone. Might be just one area of the screen, or possibly anywhere on the screen (supposedly the whole screen becomes a fingerprint reader).
The important thing here is to remember that Apple launched their iPhone upgrade program whereby you have the option to upgrade after 1 year if you enter into a new 2 year installment plan. So anyone on that plan has a lower impediment to upgrading to the iPhone 7 and will still have the option to upgrade to the iPhone 8, without the hassle of selling their device, dealing with carrier contracts, etc.
So from AAPL’s standpoint they lock in people to AppleCare that might otherwise not get it, and they keep more of the resale margins. For SWKS more people will be willing to upgrade yearly if it doesn’t require the up front $300-500 payment.