The iPhone 7’s new solid-state home “button” does not work without skin contact, rendering the phone inaccessible when placed inside a sports armband, a waterproof case or when the user is wearing touch screen gloves.

The new home button, which is pressure sensitive and does not move, is an essential part of the new iPhone. A change made for iOS 10 means that you cannot move past the lock screen without activating the home button, even if you are attempting to enter a pin code to unlock the device.

The Guardian tested capacitive gloves and a see-through case that covers screen. It was not possible to activate the iPhone 7 or 7 plus’s Home button using either, but it was possible to fully manipulate the touch screen.

Workarounds include using the nose, chin, elbow, knee or any other piece of skin to activate the home button to bring up the prompt for a pass code. 
Users attempting to activate the iPhone 7 within a see-through bag or sports armband will have to remove the smart phone to do so.

The home button also functions as an integral part of the mechanics of iOS returning users to the home screen. Without use of the home button, users can use the 3D touch press and drag from the left-hand side of the phone to access the recently used apps and select the home screen, which works perfectly fine with touch screen gloves, but is difficult to perform within a see through case that covers the screen.

Some users have reported that some touch screen-capable gloves were able to activate the home button, but the majority appears not to work.

Source- TheGuardian