Two new iPhones, a Watch and a U2 album launched at Apple event

Apple has unveiled the "Apple Watch" alongside two new iPhones with sharper and larger displays, calling the wearable device the next chapter in its history.

The first new product to be developed and introduced under chief executive Tim Cook’s reign is a wearable device tethered to the iPhone that will combine health and fitness tracking with communications.

Bernstein Research analyst Toni Sacconaghi estimated if Apple were to sell 30 million watches at $250 each, it would add about $7.5 billion to its revenue.

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Apple CEO Tim Cook greets the crowd with Bono as The Edge looks on in Cupertino, California. Apple unveiled the Apple Watch wearable tech and two new iPhones, the iPhone 6 and iPhone 6 Plus. Photograph: Getty

Rival electronics giants such as Sony Corp, Samsung , LG Electronics Inc and Qualcomm Inc have already launched smartwatches, albeit without much success.

The pressure had been on for the world’s largest tech company to wow at its “special event” in Cupertino. The prospect of the Watch had attracted a broader swathe of attendees than usual, with celebrities, fashion industry editors and even healthcare executives rounding out the mostly tech-industry crowd.

Today 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. It also introduced a new mobile payments service dubbed “Apple Pay”.

Mr Cook said: “Today we’re launching the biggest advancement in the history of iPhone.” The new iPhone’s larger screens compare to the four-inch screen of the current generation iPhone 5s.

Both devices also have what Apple call “ion-strengthened glass” screens. The larger of the two new devices, the 6 Plus, also allows for apps such as messages and mail to be displayed in landscape orientation for the first time.

The firm also confirmed a new processor chip, the A8, which will be used to power new apps and games, with partnerships with game studios including Disney and EA also confirmed on stage by Apple's Phil Schiller.

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.

In a rare move for the company, Apple had planned on livecasting its event online, with a simultaneous translation in Chinese. But the livestream went down for many users about a half-hour in, prompting many to take to Twitter to express their frustrations.

It was also announced at the event that U2's latest album Songs of Innocence was being given away free to iTunes customers.

The album, which has also been given to subscribers of the band’s website, will be released generally on October 13th.

Agencies