Apple Unveils Watch With Cellular Capabilities
September 12 2017 - 1:25PM
Dow Jones News
By Tripp Mickle
CUPERTINO, CA -- Apple Inc. on Tuesday unveiled a new smartwatch
capable of connecting to cellular networks for calls, messages and
streaming music, marking the first step toward liberating the Apple
Watch and users from dependency on the iPhone.
The Apple Watch Series 3 will have an LTE chip that enables it
to connect to the fastest cellular networks for many of the same
functions the iPhone offers. Its predecessor, the Apple Watch
Series 2, acted more like a remote control for the iPhone, using
Bluetooth and Wi-Fi to fetch email, messages and other data from
the handset.
The Apple Watch will feature new chips and new antenna. Chief
Operating Officer Jeff Williams said it is the same size as its
predecessor. He demonstrated the device on stage by using it to
call his daughter, who was paddleboarding on Lake Tahoe and also
talking with an Apple Watch Series 3.
The new Watch costs $399 with cellular capability, or $329
without. It looks similar to its predecessor, except for a red
accent on a knob on the right side of the device. The Apple Watch
Series 2 will be reduced in price to $249.
AT&T, Sprint, T-Mobile and Verizon will offer cellular in
the U.S., with availability beginning Sept. 22
The new Apple Watch opened the company's annual product
showcase, held for the first time at Steve Jobs Theater on the new
$5 billion campus. The highly-anticipated event is expected to be
punctuated by the release of a new, pricier iPhone with advanced
features including facial recognition, which software leaks
indicate will be called the iPhone X.
Investors, betting the new phone will rejuvenate Apple's sales
after a recent slump, have pushed Apple's share price to record
highs in recent months. The company announced a new Apple TV with
4K capabilities that can stream ultra-high definition video to
compatible televisions with more than 8 million pixels per frame --
significantly sharper than traditional high-definition video.
Apple has sold an estimated 30 million Apple Watches since
introducing the device in 2015, according to market research by
IDC. The addition of Global Positioning System (GPS) and waterproof
capabilities introduced with last year's Apple Watch Series 2 has
the company on track to boost sales nearly 25% this year.
Investors have been tracking the Apple Watch's evolution closely
as it has the potential to diversify Apple's revenue, two-thirds of
which comes from iPhone sales. To date, Apple hasn't disclosed
sales of the Watch, which was its first all-new product released
under Chief Executive Tim Cook, and some detractors have said sales
were stymied because the initial version lacked purpose.
Last year, Apple shifted its focus around the Watch to emphasize
its ability to track runs, walks, swims and other fitness
activities. The marketing around the first iteration of the Watch
had focused on the device as a fashion accessory.
The Apple Watch Series 3 has the potential to extend recent
sales gains by boosting the device's functionality, analysts said.
The cellular capabilities allow people to leave their iPhones
behind and still send and receive emails and messages by using
Siri's transcription abilities. Users with AirPods wireless
headphones could also make and receive calls using just the
watch.
Write to Tripp Mickle at Tripp.Mickle@wsj.com
(END) Dow Jones Newswires
September 12, 2017 14:10 ET (18:10 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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