Apple is opening up opportunities for makers of mobile applications and boosting NFC payments by unveiling its first smartwatch and including a mobile payments solution in the iPhone 6. 

Apple?s much-anticipated announcement included the introduction of Apple Pay, which lets consumers use their phones and a credit card from an iTunes account to pay for items by Touch ID, and Apple Watch, whose features include the ability to look at photos, use Siri and reply to messages, and larger display screens for its iconic smartphone.

The moves allow Apple to gain ground on rivals who have passed it with larger smartphone screens while sending a message that the Cupertino, CA technology maker of numerous game-changing devices is still a force to be reckoned with in the innovation arena.

?We?re definitely going to see new opportunities around location, especially when it comes to any kind of push notifications, or interactive displays, digital advertising, that sort of thing,? said Ryan Martin, analyst, wearable technologies at Boston-based 451 Research.

?That?s also going to be used in both in input and output mechanisms. To date a lot of wearables have focused on the delivery. This also will open the doors for consumption of content as well. A lot of it has to do with a high degree of automation."

Security code
Apple Pay transactions will be authorized with a one-time, unique number, creating a security code.

Apple said the system is secure because cashiers will not see your name, card number or security code. 

Apple Pay promotion on www.apple.com.

The service will work with American Express, MasterCard and Visa. Apple Pay is supported by 220,000 retailers who already support contactless payments from Softcard and Google Wallet.

?Apple inclusion of NFC provides a significant shot in the arm to the NFC payments ecosystem and NFC marketing,? said Nitesh Patel, director of wireless media strategies with Strategy Analytics in Newton, MA.

Although Apple didn?t talk about the use of NFC for mobile marketing activities such as smart posters and smart advertising, Mr. Patel said he was sure those are supported capabilities as part of NFC enablement.

?Unlike Softcard and Google Wallet, Apple has managed to convince six of the largest issuing banks into the Apple Pay ecosystem,? he said. ?Apple claims those issuers account for 83 percent of US credit card volume.

?Security and privacy is at the heart of Apple Pay ? keeping the transaction data secure for consumers,? Mr. Patel said. ?Clearly Apple believes security is one of the missing ingredients to kick-start demand for NFC payments among consumers. 

?If the added security with Touch ID lowers the transaction fees for merchant fees then that is also an incentive for retailers to support Apple Pay,? he said.   

Apple, as rumored, also announced larger screen sizes, allowing it to catch up with its peers who some time ago expanded beyond four-inch screens.

The iPhone 6 is 4.7 inches diagonally while its larger counterpart, the iPhone 6 Plus, is 5.5 inches. By comparison, the iPhone 5S display measures four inches diagonally.

From a marketing standpoint, the larger screens have significant implications. ?Larger screen sizes will also improve video and photo experiences on the phone,? Mr. Patel said.

The iPhone 6 and iPhone 6 Plus will be powered by Apple?s A8 chip. The phones? processing power is 25 percent faster, while graphics are 50 percent faster. The iPhone 6 camera includes slow-motion and time-lapse video.

The iPhone 6 faced high expectations given that Apple was perceived as losing ground in the smartphone market. 

 WatchKit lets developers extend existing apps to Apple Watch.

The iPhone's worldwide smartphone market share plummeted from a peak of 23 percent in fourth-quarter 2011 to 12 percent in the second quarter of this year, according to IDC. Samsung smartphone shipments more than double Apple?s smartphone shipments each quarter.

The presentation included the unveiling of WatchKit, a framework that lets developers extend existing applications to Apple Watch. Companies that have already built apps for the device include Honeywell and Nike.

Mixed opinions
Analysts had mixed opinions on whether Apple has effectively silenced critics who have said the company is losing its legendary ability to produce exciting, sleek consumer-friendly products.

?Yes and no,? said Julian Zehetmayr, founder and CEO of mobile-advertising platform Mobfox. ?If anything, Apple responded to market demands for larger phones in light of greater competition from Samsung and their line of phablets. Why? Because it had to. 

?Approximately 50 percent of its revenue comes from it's iPhone line and the growth rate for phones with 4 inch screens is stagnant,? the executive said. ?With iPhone, Apple was really playing catch up. Aside from size, there weren't many changes in the 6 that positioned Apple as the innovator in the smartphone device market.

?The most exciting news from today's event came from the software side, specifically Apple's advances in payments and its entry in home health.?

Final Take
Michael Barris is staff reporter on Mobile Marketer, New York.