Apple announces 'native' apps for Watch

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SAN FRANCISCO -- Apple Chief Executive Officer Tim Cook announced Monday an update to the operating system for its Watch that should make apps for its latest gadget speedier and help untether it from the iPhone.

Cook said that so-called "native" apps will be coming for the Watch and was the biggest news in the early part of his address at an annual developers conference, but the company was expected to later announce details of a widely anticipated streaming music service.

The company also unveiled new details about its Apple Pay service, saying it was already supported by more than 2,500 banks and will surpass 1 million locations accepting it next month. In addition, the company said it would roll out the service to the United Kingdom next month.

In a related move, Apple said it would rename Passbook, its app for credit and debit cards and boarding passes, to Wallet.

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Apple Inc. shares were down about 1 percent at $127.48 in early afternoon trading as Cook and others spoke.

The company also unveiled the next version of its operating system for Macs, El Capitan, continuing the company's theme of naming key updates to the software after California landmarks. The software will be available in the fall.

Like other Apple products, the Watch's commercial success will likely hinge on a compelling collection of apps. But early apps for the timepiece have been tethered to the iPhone, placing some limits on what developers could do.The expanded software kit should lead to better and faster watch apps, said Bob O'Donnell, an analyst at TECHnalysis Research, in an interview before the event.

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Apple announces 'native' apps for Watch
SAN FRANCISCO, CA - JUNE 08: Apple CEO Tim Cook delivers the keynote address during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, and a new iOS during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Apple Craig Federighi, Apple senior vice president of Software Engineering, speaks about iOS 9 during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, and iOS 9 during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Apple Craig Federighi, Apple senior vice president of Software Engineering, speaks during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, and iOS 9 during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Apple Vice President of Worldwide Online Stores, Jennifer Bailey, speaks about Apple Pay during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, and iOS 9 during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Apple CEO Tim Cook delivers the keynote address during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, and a new iOS during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Apple senior vice president of Software Engineering, Craig Federighi (L), shakes hands with Apple CEO Tim Cook during the Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, and iOS 9 during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Apple Vice President of Worldwide Online Stores, Jennifer Bailey, speaks about Apple Pay during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, and iOS 9 during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
Attendees line up outside of the Moscone West building for the first day of the Apple Worldwide Developers Conference in San Francisco, Monday, June 8, 2015. The maker of iPods and iPhones is expected to announce its new, paid streaming-music service to launch this summer. (AP Photo/Jeff Chiu)
Apple logos adorn the exterior of the Moscone West building on the first day of the Apple Worldwide Developers Conference in San Francisco, Monday, June 8, 2015. The maker of iPods and iPhones is expected to announce its new, paid streaming-music service to launch this summer. (AP Photo/Jeff Chiu)
Apple senior vice president of Software Engineering Craig Federighi speaks about the Apple HealthKit app at the Apple Worldwide Developers Conference in San Francisco, Monday, June 2, 2014. (AP Photo/Jeff Chiu)
SAN FRANCISCO, CA - JUNE 08: Apple Vice President of Worldwide Online Stores, Jennifer Bailey, speaks about Apple Pay during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, and iOS 9 during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Craig Federighi, Apple senior vice president of Software Engineering, speaks about the News app during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, and iOS 9 during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Apple Craig Federighi, Apple senior vice president of Software Engineering, speaks about OS 10, El Capitan, during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, and iOS 9 during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Apple CEO Tim Cook (C) poses for a photo with high school kids during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, iOS 9 and Apple Music during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Attendees gather during Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, iOS 9 and Apple Music during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Apple's senior vice president of Internet Software and Services Eddy Cue speaks during the Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, iOS 9 and Apple Music during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
SAN FRANCISCO, CA - JUNE 08: Recording artist Drake speaks about Apple Music during the Apple WWDC on June 8, 2015 in San Francisco, California. Apple annouced a new OS X, El Capitan, iOS 9 and Apple Music during the keynote at the annual developers conference that runs through June 12. (Photo by Justin Sullivan/Getty Images)
The Weeknd performs at the Apple Worldwide Developers Conference in San Francisco, Monday, June 8, 2015. The maker of iPods and iPhones announced Apple Music, an app that combines a 24-hour, seven-day live radio station called "Beats 1" with an on-demand music streaming service. (AP Photo/Jeff Chiu)
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The event is also expected to unveil Apple's new music streaming service. The company behind the iPod and iTunes has long been a leader in digital music, but it has lost ground in recent years as subscription services such as Spotify have caught on with consumers.

Analyst Van Baker of Gartner said he expects Apple to release a new service to win a bigger share of the streaming business.

"This is catch-up for Apple," he said.

An Apple spokesman did not immediately respond to a request for comment.

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