Apple unveils smartwatch, bets on wearable devices
<p>Apple CEO Tim Cook introduces the new Apple Watch on Tuesday in Cupertino, Calif. Apple's new wearable device marks the company's first major entry in a new product category since the iPad's debut in 2010. Apple CEO Tim Cook introduces the new Apple Watch on Tuesday in Cupertino, Calif. Apple's new wearable device marks the company's first major entry in a new product category since the iPad's debut in 2010.</p>
CUPERTINO, Calif. (AP) - Apple unveiled its long-anticipated smartwatch Tuesday, introducing a device that transplants the features of an iPhone onto a smaller screen that's never more than an arm's length away.
Dubbed the Apple Watch, the gadget marks the technology trend-setter's attempt to usher in an era of wearable computing and lift its sales with another revolutionary product.
The watch's debut also heralds a turning point in Tim Cook's three-year reign as Apple CEO. Although the company has thrived under Cook's leadership, it had only released upgrades to the iPhone, iPad and other products hatched before his predecessor, Steve Jobs, died in October 2011. The lack of totally new devices raised questions about whether Apple had run out of ideas without the visionary Jobs.
Now Apple is betting on a gadget that seems like something James Bond might wear. The Apple Watch's top-of-the-line edition comes in a casing made of 18-karat gold, with an array of elegant bands available for most models. The watch can serve as a walkie-talkie, a drawing pad, pulse monitor, calorie counter and activity tracker.
"It is amazing what you can do from your wrist," Cook said.
Apple is a late arrival to the still-nascent market for wearable technology. Several other companies already sell smartwatches that have been greeted with widespread indifference.
But Apple has a reputation for igniting dormant markets. Other music players, smartphones and tablet computers were first to market, but the devices did not enthrall consumers until Apple imbued them with its magic touch.
The smartwatch "might not only be a game changer for Apple, but for the entire industry," says FBR Capital Markets analyst Daniel Ives. "A lot of major technology players around the globe are taking notes on what Apple is trying to do here."
Investors appeared lukewarm about the unveiling. Apple's stock dipped 37 cents to close at $97.99, but the shares had been surging for months ahead of Tuesday's show. The stock has gained 22 percent so far this year and hit an all-time high earlier this month.
It will take months to gauge the popularity of the Apple Watch. The $349 device won't go on sale until early next year.
Cook hailed it as the most "personal device we have ever created."
The watch is "the first product we have seen with Tim's fingerprints all over it," said Creative Strategies analyst Tim Bajarin, who has been following Apple through most of its 38-year history.
The watch will tie into a new payment system designed to enable people to store all their credit card information in a digital locker so merchandise can be bought with a tap on a sensor at a checkout stand or a press of the button.
The watch must be used with one of the iPhone models released in the past two years - the 5, 5S, 5C or the latest versions scheduled to go on sale Sept. 19 in the U.S. and nine other countries.