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Apple Unveils Large iPhone, Watch

Apple Unveils Large iPhone, WatchApple Unveils Large iPhone, Watch

 Apple Inc unveiled a watch, two larger iPhones and a mobile payments service on Tuesday as Chief Executive Officer Tim Cook seeks to revive the technology company's reputation as a wellspring of innovation.

The first new product to be developed and introduced under Cook's reign is a timepiece tethered to the iPhone that will combine health and fitness tracking with communications. It will price at $349 and go on sale in early 2015.

First impressions were mixed. Some expected Apple to blow away the current competition but others warned the fact that it requires a paired iPhone may limit its sales.

Starting at $349 – $50 more than the cheapest version of the iPhone 6 with a contract, the lofty price tag may also keep some consumers on the sidelines. It could go up to more than $1,000 for higher-end editions, IDC analyst Danielle Levitas said.

The Apple Watch can receive phone calls and messages, play music, serve as a digital wallet to pay for goods and monitor heart rates via special sensors. The watches will come in three collections, including a sport edition and an upscale line coated in 18-karat gold.

Smartwatches

Still, rival watch and wearable device makers will keep a wary eye on Apple, which upended the music industry and drove once-dominant phone makers like Blackberry to the brink of extinction.

Sony Corp, Samsung, LG Electronics Inc and Qualcomm Inc have already launched smartwatches, albeit without much success.

The watch is unlikely to increase Apple's top-line. Estimates vary but IDC expects total global demand of 42 million smartwatches in 2015. Apple sells that many or more iPhones in a good quarter.

Also on Tuesday, the company took the wraps off a larger, 4.7-inch iPhone 6 and 5.5-inch iPhone 6 Plus. They will support more than 200 telecoms carriers worldwide, including all three in China – a key growth market for the company.

And it introduced a new mobile payments service dubbed "Apple Pay." Each phone will come equipped with its new payments service, which launches in the United States next month and allows users to pay for items in stores with their phones instead of physically presenting their credit or debit cards.

Each new iPhone will come with a "secure element" chip and a near-field communications, or NFC, antenna.

 

Financialtribune.com