Will Apple reveal its next big thing?

Apple is likely to provide the first peek at its wearable device at an event tomorrow morning. Photo / AP

Apple is poised to reveal its next big thing in a crucial attempt to prove its technological tastemakers still have the power to mesmerise the masses.

The trend-setting company is expected to rouse the still-slumbering market for wearable computers with a smartwatch or bracelet equipped to monitor health, help manage homes and even buy merchandise.

Apple is a late arrival to this relatively new niche: several other companies already sell smartwatches that are being greeted with widespread indifference.

If any company can transform the landscape, it's likely to be Apple after the company shifted the direction of digital technology with the iPod, iPhone and iPad. Other MP3 music players, smartphones and tablet computers were first to market, but the devices didn't enthrall consumers until Apple imbued them with a sense of elegance, convenience and wizardry.

"It means more to us to get it right than to be first," Apple CEO Tim Cook explained to analysts earlier this year.

Apple is likely to provide the first peek at its wearable device at an event tomorrow morning (NZ time) in the same Silicon Valley auditorium where Apple's late co-founder, Steve Jobs, unveiled the industry-shifting Mac computer 25 years ago.

Rumours have been swirling that U2, one of Jobs' favourite musical groups, will perform live to promote its new album, as well as Apple's latest gadgetry, which is likely to include an iPhone with a larger screen.

As usual, Apple hasn't said what's on tap, though the company's top executives have repeatedly promised major breakthroughs without providing any details.

"The location suggests this will be a historic event and the historic aspect will be their movement into a new category," predicted technology analyst and longtime Apple watcher Tim Bajarin.

After tomorrow's glimpse, it still may be several months before people get a chance to wear the device. There's speculation that the smartwatch won't be available until early next year, although Apple is expected to take orders during the holiday shopping season.

A smartwatch or high-tech bracelet would mark the first time that Apple has rolled out a new product line since the iPad's release nearly four-and-half years ago. In that time, the Cupertino, California, company, has been sprucing up its selection of iPhones, iPads and Macs with new models each year since Jobs died in October 2011 after a long battle with cancer.

The innovation void raised questions as to whether Apple's creativity was fading under Cook, Jobs' hand-picked successor.

Those concerns have waned in recent months amid high hopes for the products Apple has lined up for the holiday shopping season. The fervour propelled Apple's stock to new highs last week, a dramatic swing in sentiment from 17 months ago when the shares were trading about 44 per cent below current levels. The stock was down less than 1 per cent to $98.20 in Monday afternoon's trading.

Even with all the anticipation surrounding the potential smartwatch, the next generation of the iPhone will still be the star of tomorrow's show, as well as the main source of Apple's profits for at least the next year.

The device, likely to be called the iPhone 6, is expected to feature a screen spanning at least 4.7 inches diagonally, up from the 4-inch display on the previous models released during the past two years. Some analysts have speculated Apple may also offer an iPhone model with a 5.5-inch screen.

Any significant increase in the iPhone's size would make the device more competitive with smartphones made by Samsung Electronics and other rivals, and virtually ensure that Apple would have one of the holiday season's hottest selling items. "There is incredible pent-up demand for a larger-screen iPhone," Bajarin said.

Besides a larger screen, the new iPhone is expected to include a near-field communications chip that would enable the device to transmit payment information wirelessly to receivers at store check-in stands.

The technology is expected to be accompanied with a mobile wallet feature that taps into the more than 800 million credit card account numbers that users store on Apple's remote servers to buy songs, video and apps from its iTunes stores. The mobile wallet could be secured with a fingerprint reader that Apple introduced last year on the iPhone 5S.

The mobile wallet conceivably could also work on a smartwatch or high-tech bracelet.

Apple's latest mobile software for the iPhone 6 and other recent models, iOS 8, also includes two features called HealthKit and HomeKit that represent the next step in the company's to play an even bigger role in the lives of the people tethered to its devices.

The tools are designed to turn Apple's products into a suite of digital servants that do everything from monitoring a person's eating habits and exercise routines to turning on the coffee maker in the morning to turning off the lights at night.

If Apple follows its recent traditions, the free iOS 8 software will be released shortly before the iPhone 6 goes on sale later this month.

Apple's new iPhone: Should you buy one?

With Apple likely to release at least one new version of its phone tomorrow, many iPhone users will wonder if now is the time to upgrade - or if they should hold out for something better. Here are a few questions you can ask yourself before Apple unveils all the details.

Q: How old is my phone now, and how much longer can I stand it?

A: If you've had your phone for a couple years and it's a daily, tooth-grindingly annoying source of frustration, then you should probably buy a new phone. It's an easier choice if your phone is due for an upgrade - something that normally comes up every two years, unless you've opted for a plan that lets you upgrade more frequently without penalty.

There were a lot of Apple fans who weren't impressed enough by the iPhone 5s and 5c to upgrade, meaning that there are probably a lot of eager potential upgraders out there.

And if you're still toting an iPhone 4, 4s or 5, then you've got a pretty good incentive to upgrade now.

Even if rumours of bigger screens don't pan out, there's a good chance, based on Apple's past actions, that the new iPhone will have a next-generation processor in it - one that will speed up your phone significantly.

If you have an iPhone 5s, an upgrade is a harder sell. If the reports about a bigger screen are true, and you're suffering with this iPhone's 4-inch screen, then you could probably justify the upgrade.

But unless the small screen drives you crazy, you should probably wait to see if there are any killer features announced tomorrow that make it worth your while. For 5c owners, the question is whether you've been happy with Apple's cheaper, lower-tier smartphone. If you've been okay, then you probably have no compelling reason to upgrade.

Q: What do I need my phone to do?

A: In a way, the next iPhone will be more about what services it offers - helping you open your garage door, tracking your exercise workouts - rather than the specifics of the hardware. Apple is aiming to create a sort of universal remote control for your life, and it's likely to rely on more user data than ever.

Apple has a fingerprint sensor and the M7 motion-sensing chip in the iPhone 5s, which works with fitness and other apps to sense how you move while you're holding your phone.

And the company's data hubs, HealthKit and HomeKit, are designed to let iPhone users organise their fitness data and information from wired home appliances. There are also reports that Apple will introduce some form of mobile payment technology with the latest iPhone that will let users pay for products with just a tap of their phones.

The recent hacking of celebrities' Apple iCloud accounts, which led to the theft of nude photos, has made many consumers wary about handing over their data to a cloud computing system. Apple has said it will offer new options to users to better protect their iCloud accounts. And the company is counting on the idea that people want their phones to make their lives ever more convenient.

Q: Will I be able to afford the new phone?

A: There are rumours that Apple will be raising the price on its phone because of its predicted larger screen and fancy new components. The current price in the US is $199 for a subsidised phone with a two-year plan and $649 for an unsubsidised model.

New plans from carriers have reduced the cost of frequent upgrades by slashing the fee you used to have to pay to get a new phone before your contract runs out. But doing so is still not what you'd call a budget-conscious move - you're still paying the full price of the phone, just in installments.

And for all that is exciting about a shiny new phone, remember that you may not want to pay for a bunch of new features that you won't use. There's also no shame in upgrading to last year's model when Apple slashes its price, something the company has done every time it's introduced a new phone.

- AP, Washington Post