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"They have finally added a larger-screen phone so that they can directly compete with the Galaxy Note9 products," Gartner analyst Annette Zimmermann said at the event at Apple's Silicon Valley headquarters, referring to rival Samsung Electronics which has led the trend toward big-screen phones.
It is positioning the new watch as a more comprehensive health device, able to take an electrocardiogram to detect an irregular heartbeat and start an emergency call automatically if it detects a user falling down, potentially appealing to older customers.
The U.S. Food and Drug Administration said it worked with Apple to develop apps for the Apple Watch and has been taking steps to ease the regulatory pathway for companies seeking to create digital healthcare products.
As many as 6.1 million Americans have atrial fibrillation, a heart disease involving irregular heart rhythm for which the Watch could offer an early warning. That number is expected to double by 2050 as the population gets older, according to the American Heart Association.
"This does have a lot of potential for patients," said Dr. Michael Valentine, president of the American College of Cardiology and a cardiologist at Central Health in Lynchburg, Virginia. "Clinicians face patients every day with palpitations, rapid heart rates, and other symptoms," and the doctors want a more portable monitoring and recording system.
BMO Capital Markets analyst Joanne Wuensch added that physicians would be unlikely to make medical treatment based on data from the watch, though it could encourage patients to see cardiologists.
Healthcare technology analyst Ross Muken at Evercore said many companies were developing monitoring devices. "This update really establishes the company's increasing efforts to push the watch as a serious medical device," he said of Apple.
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