UPDATE | More info on Apple's larger smartphone, Apple Watch

CUPERTINO, Calif. (AP) — For the first time in years, Apple's iPhones aren't the star of the show.

Apple unveiled a smartwatch called the Apple Watch today, a wearable device that marks the company's first major entry in a new product category since the iPad's debut in 2010.

The move is significant because of recent questions about whether Apple still has a knack for innovating after the 2011 death of co-founder Steve Jobs.

The device's introduction upstaged the company's two new, larger iPhones, which won't just have bigger screens; they'll have a new, horizontal viewing mode to take advantage of the larger display.

The iPhone 6 will have a screen measuring 4.7 inches, while the iPhone 6 Plus will be 5.5 inches. In both cases, app developers will be able to design apps that can be viewed differently when the phone is held horizontally.

Apple also introduced a system for using the phone to make credit card payments at retail stores.

As for the iPhones, which still represent the main source of Apple's profits, larger models should help the company compete with Android devices.

The audience erupted with cheers as Cook proclaimed that he had, "one more thing." It was how Jobs used to close his keynote addresses.

That one more thing was Apple's smartwatch. It's called the Apple Watch, rather than the iWatch that many people had been speculating.

Cook says Apple had to invent a new interface because simply shrinking a phone wouldn't work.

Much of the interaction would be through the dial on the watch. You use that to zoom in and out of a map, for instance, so you're not blocking the screen, which would have occurred if you were pinching in and out to zoom.