Apple introduces new iPhones, mobile payments and watch

Apple Watch
Source: Apple Inc.

Apple's Tim Cook introduced a swath of long-rumored products on Tuesday, including two new iPhones, a mobile payments system and a watch.

"Today, we have some amazing products to share with you, and we think at the end of the day you will agree that this, too, is a very key day for Apple," Cook said.

The iPhone 6 and iPhone 6 Plus respectively have 4.7 inch and 5.5 inch screens and are 6.9 and 7.1 millimeters thick. The phone's camera boasts a number of new features, including optical image stabilization and a function that picks the best photo out of a series of shots. Prices for the devices start at $199 for iPhone 6 and $299 for the iPhone 6 Plus. Both will be available in stores on Sept. 19. The phone also featured substantially better battery life than a next-generation motion processor called the M8, Apple said.

Apple's big two minutes
Apple's big two minutes

The most significant new phone feature, though, was Apple Pay, a near-field-communication-based payment system built into both phones. The feature turns the iPhone into a one-touch payment system, keeping a user's various debit and credit card information within the phone. Several major retailers have already agreed to accept Apple Pay, including McDonald's, Whole Foods, Starbucks and Disney.

Apple also unveiled its long-rumored wearable, called the Apple Watch. The device acts as a new platform for storing and displaying photos, maps, health and fitness information, and, of course, telling time. The device integrates Siri, the company's voice-activated interface, into its functionality.

"It will redefine what people expect in a watch," Cook said.

The watch will start at $349, and will go on sale in early 2015, Cook said. Unlike Apple Pay, the watch is compatible with certain older iPhones, including the iPhone 4 and 5. Importantly, Apple Pay will also work on the watch.

Read MoreWould you buy the iWatch?

The company's stock was up about 2.5 percent near the end of the presentation, contrary to most Apple-product-unveiling days, when the company's stock tends to drop. It later was trading slightly below its opening price. Volume was three times normal.

Apple introduces the iPhone 6 on Sept. 9 2014.
Source: Apple Inc.

Other stocks related to ecommerce, watches, technology or display didn't fare so well. Fossil was down 3.2%; eBay dropped 2.5%; Sonus was down 2%; Universal Display dropped 6%, and Pixelworks was down 6%.

Both the phones and the watch feature a number of applications related to monitoring a user's health, an area that has seen more investment from both Silicon Valley and Wall Street in recent years. The watch, in particular, boasts apps that collect information on a person's movement, measures heart rate and calories burned.

Perhaps to underscore, the high-profile, celebrity nature of the event, Irish rock band U2 took the stage, performed a song, and announced that Apple would be giving copies of the band's new album away for free to every iTunes customer.

The topic of cloud security, an issue highlighted by recent high-profile hacks that leaked compromising photos of high-profile people to the public, was not addressed during the presentation.

By CNBC's Cadie Thompson, and CNBC's Matt Hunter