What Apple needs from the iPhone?

With Apple's launch event in San Francisco less than a week a way, speculation is beginning to build about what new products the world'smost valuable brand has up its sleeve.

Most widely rumoured is an updated version of the iPhone. It is thought that Apple is planning to launch two versions of its flagship smartphone – one with a 4.7-inch display and one with a 5.5-inch display. Both will be thinner than existing models and have rounded corners and edges.

Rumours suggest the screens will be made of sapphire glass, which is synthetically created and is thinner, stronger, and more scratch-resistant than the Gorilla Glass used in current models of the iPhone. It is so hard, in fact, that it has to be cut using diamond-tipped saws.

The device will run the new iOS 8 operating system, which offers a raft of new features for health and fitness monitoring as well as for controlling home appliances. Improved multitasking and better continuity between Apple devices are also features of iOS 8.

However, competition in the smartphone market has never been stiffer, and many of the rumoured features simply bring the iPhone into line with Android devices fromSamsung, HTC and Sony. The pressure is therefore on for Apple to deliver more than a super-sized iPhone.

Some sources claim that Apple will also launch its long-awaited iWatch at the September 9 event. The wearable device is rumoured to feature a 2.5-inch arched rectangular display and contain more than ten sensors.

It is thought the iWatch would integrate with the iPhone's HealthKit and HomeKit frameworks, potentially allowing users to control lights and garage doors from their wrist, as well as monitoring their fitness and wellbeing.

^{This rendering from Ciccarese Design borrows much from the aesthetics of the iPhone}

Apple would not be the first tech company to launch a smartwatch – major brands including Samsung, LG and Motorola have all already released second generation wrist-worn devices, which have impressed critics and consumers alike.

However, Apple will be hoping that its iWatch can do the same thing for wearable technology as its iPhone did for smartphones and its iPod did for MP3 players.

"This is a rare approach from a company that has historically set trends, rather than following them. So to win big, these devices need to be more than also-rans," said Ernest Doku, telecoms expert at uSwitch.com.

"The anticipated two-pronged attack on the hot new areas of the market – wearables and bigger screens – is a safe play, but a necessary one."