Apple kicks off gala event with larger iPhones

Apple Inc unveiled two new iPhones on Tuesday with sharper and larger displays, confirming longstanding speculation it will move into a market segment dominated by arch-rival Samsung Electronics.

Apple is expected to introduce its first new product since the iPad in 2010, a smartwatch, later on Tuesday.

The pressure is on for the world's largest tech company to wow at its "special event" in Cupertino. The prospect of Chief Executive Officer Tim Cook unveiling the first device developed under his reign attracted a broader swathe of attendees than usual, with celebrities, fashion industry editors and even healthcare executives rounding out the mostly tech-industry crowd.

(Reporting by Christina Farr and Alexei Oreskovic; Editing by Bernard Orr)