Apple updates iPads, watches as new 5G iPhones expected

Apple Inc on Tuesday announced its Series 7 smart watch with a larger display and faster charging, and the tech company was also expected to release new versions of its best-selling iPhone to entice consumers into 5G plans.

The company also updated its iPad Mini with 5G connectivity and a reworked design that makes it look like the higher-end iPad Air and Pro models. Apple also updated its base-model iPad with a new camera for working and learning from home. The base model iPad starts at $329, and the Mini starts at $499. Both will be available next week.

Apple last year introduced its iPhone 12, which featured a new look and its first devices with 5G connectivity. This year, analyst expect modest hardware upgrades and a deeper focus on 5G.

In particular, carriers such as AT&T Inc, Verizon Communications and T-Mobile that have significantly built out their networks since the start of this year are likely to offer new incentives around the devices that can take advantage of the faster speeds those networks can offer, said Ben Bajarin, head of consumer technologies at Creative Strategies.

"There seems to be way more (5G network capacity) than was in place even six months ago," Bajarin said. "They want people upgrading. They're going to be really aggressive."

Apple's biggest product launch of the year comes as some of the shine has come off its stock as business practices such as charging software developers commissions on in-app payments have come under regulatory scrutiny.

Apple shares were up about 15.6% year to date, trailing the Nasdaq Composite Index, which was up nearly 19% over the same period.

The iPhone 13, as analysts expect the new phone to be called, likely will not look much different on the outside from the iPhone 12. But analysts expect it to have a faster wi-fi and processor chips, and Bloomberg has reported that the top model is likely to focus on display and camera enhancements such as a "Portrait Mode" to blur backgrounds when shooting videos.

The Apple Watch has become a cornerstone of its $30.6 billion accessories segment, which was up 25% in Apple's most recent fiscal year even as its iPhone revenue declined slightly. Analysts widely believe that Apple users who buy more than one product - such as an Apple Watch and iPhone - are more likely to stick with the brand and spend on the company's apps and services.

Apple focused on fitness features with the watch, which is paired tightly with Apple Fitness+, a paid service offering guided workouts with Apple instructors.

"It's the one service they offer where you literally have to have this product or you can't use this service," Bajarin said.