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September 10, 2014

Apple unveils watch and new iPhones

Apple has unveiled a smartwatch - the Apple Watch - its first new product line since the first iPad and the death of Steve Jobs.

The device runs apps, acts as a health and fitness tracker and communicates with the iPhone. Although many companies already sell competing products, experts note that Apple has a history of entering sectors relatively late and then changing their direction with influential devices of its own.

Apple also unveiled two new handsets that are larger than previous models. The iPhone 6's screen measures 4.7in (11.9cm) and iPhone Plus 5.5in (14.0cm) - a change that analysts said should help it prevent users migrating to Android.

It also announced a new service called Apple Pay, which chief executive Tim Cook said he hoped would "replace the wallet" in shops.

Watch apps

The Apple Watch is controlled by what Apple calls a "digital crown" - a dial on its side that allows content on its screen to be magnified or otherwise changed, and also be pressed inwards to act as a home button.

The display is a touchscreen that can detect the difference between a light tap and heavier pressure from the user's fingers. In addition, the device runs Siri - Apple's voice-controlled "personal assistant". It offers a variety of different watchfaces, can alert the user to notifications, act as a heart rate monitor and show maps.

Apple said that apps could also be processed on an iPhone, but displayed on the watch in order to extend battery life. Although some of these features are available from rival products, one industry observer said the device had the potential to ignite the wearable tech sector.

"Apple has been rumoured to have had a product in this space for a long time," said Tim Coulling, senior analyst at research firm Canalys.

"I'm sure that for many people, waiting to see what Apple did was a first step before going out and buy a wearable technology product, whether or not it's an Apple one they get."

Motorola's president, Rick Osterloh, told the BBC last week that he welcomed the idea of Apple "growing" the smartwatch market, even though it would compete with his own product, the Moto 360.Mr Coulling added that other rivals probably felt likewise.

"The buzz that Apple's entry will generate about wearables is unquestionable," he explained. "It has a huge marketing budget and uses slick advertisers, so its launch will generate interest around the whole product segment."

The watch - which comes in three different editions - relies on its user owning an iPhone 5 or more recent model. It will cost $349 (£216) - which is more than recently announced Android Wear watches from Motorola, Sony and others - and will not be available until "early 2015".

Bigger phones

While Apple Watch was the most anticipated product, the company's new handsets are likely to be its biggest earners.

Apple saw its global share of smartphone shipments slip from 13% to 11.7% between the second quarters of 2013 and 2014, according to research firm IDC.By contrast, Android's share grew from 79.6% to 84.7% over the same April-to-June period, with Samsung the biggest brand and Chinese firms Huawei and Lenovo two of the fastest risers.

"The main benefit for Apple in going to a larger size of screen is not so much to woo people over to its devices, but to prevent its customers defecting, particularly to devices such as Samsung's Galaxy Note," said John Delaney, head of IDC's European mobility team.

"There is a clear preference among a segment of Apple's traditional market for a big phone. "But one should bear in mind that Apple's decline is relative - the smartphone market has expanded, and most of the expansion has taken place in the lower price bracket that Apple doesn't address."

Apple had previously justified the 3.5in and 4in screen sizes of its existing iPhones as being suited to one-handed use. In 2010, the company's co-founder Steve Jobs went so far as to say "no-one's going to buy" a phone that they could not get a single hand around.

But one expert said a market had developed for so-called phablets. "It's not all consumers, but there are some people who want the larger screen real estate," said Carolina Milanesi, chief of research at Kantar Worldpanel ComTech.

"Watching video is definitely something that appeals on a bigger display, as well as gaming. And for business customers, having more space to do emails properly and look at and edit presentations helps."

Apple said that the A8 chip featured in the new phones would provide 25% faster compute performance than before.

The improved resolutions - dubbed "retina HD" - mean that the iPhone 6 offers 326 pixels per inch and the iPhone 6 Plus 401ppi. While better than before, the resolutions are still beaten in terms of raw numbers by Samsung's flagships - the Galaxy S5 and Galaxy Note 4. New sensors include a barometer, which can sense air pressure to measure the elevation.

Apple suggested this would help fitness apps distinguish whether the owner was running up a mountain or along a flatter surface. The M8 co-processor can now estimate distances as well, which may should also help provide more accurate readings. The handsets will be available for sale on 19 September.

Apple Pay

The Apple Pay service depends on an NFC (near field communication) chip featured in both the new phones and watch.

Apple described the service as being "secure" because it worked without Apple needing to store the credit card details itself, or the user having to share their name and card details with the cashier.

iPhone owners will be able to use it by waving their handset above an NFC reader at a shop's till. Several other firms have tried to pioneer touchless payments, but they have yet to catch on beyond credit cards that include the feature.

One expert noted that Apple already had experience of handling payments for third-party goods since it operated more than 800 million iTunes accounts.

"Apple has already got credit card details on file in the hundreds of millions, and is now seeking to leverage that billing relationship trust into an in-store experience with contactless payments," said Windsor Holden, head of forecasting at Juniper Research.

"The industry has been riven with disagreements as to the optimal model for deploying such mobile device-based proximity payments.

"But if anyone can, Apple can." The service launches in the US in October and the company said it was working to extend it elsewhere.

bbc.com

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