Apple has announced the M7,a new chip, described as a co-processor, in the iPhone 5s that will permit iPhone users to use fitness applications and other games that involve movement. Basically, what they have done is the phone faster, 64 bit (it can process more information at once), and with the inclusion of the M7, it can now detect motion in sophisticated ways. On the user end, it remains to be seen what this will be like, but game developers will have access to a CoreMotion API so that developers can access these tools for new apps immediately. Thus, we can expect new apps using these features sooner rather than later. This might just put similar products, such as jogging watches, out of the market.
The processor can also tell what a user is doing, be it walking, stationary, or driving. It will use the accelerometer, compass, and gyroscope continuously in the device.
Apple showed the capabilities using a game called Real Racing 3 and Nike+ Move. Nike commented saying that the app was a "introductory experience" which leads us to believe that they will be releasing more capabilities for the app in the future, likely at a price.