The iPhone 7 came with a shiny new Home button to take advantage of built-in pressure sensors and an enhanced Taptic Engine to detect and simulate clicks. Because the button no longer uses any moving parts, you’re less likely to break it. A new “Meet the new Home button” section in the iOS installer allows you to “make your iPhone experience even more personal by choosing the click that’s right for you”.
Of course, you can select between three degrees of haptic feedback that simulate clicks at any time using the stock Settings app, here's how.