Apollonian circles are defined by ratio of distances = constant. This means that the line AB intersects an Apollonian circle in points C and D that divide AB harmonically (just the definition of harmonic division. CD is a diameter of the circle.
Inversion of a point in at circle is intimately related to orthogonality of circles. If P is inverted in circle c to get P', then any circle d through P and P' is orthogonal to c.
A calculation shows that inversion is related to harmonic division. The line through the P and the circle center cuts the circle at points A and B. Then P and P' divide AB harmonically.
Putting this all together we get important relations:
We call the set of all circles through A and B (including line AB) the elliptic pencil of circles through A and B. We call the set of all Apollonian circles (including the perpendicular bisector of AB) the hyperbolic pencil defined by A and B. The set of all circles orthogonal to the circles of an elliptic pencil is a hyperbolic pencil, and vice versa.
If A and B get very close we get close to a limiting case, called a parabolic pencil. These are a set of circles through A and all tangent to the same line at A (the pencil includes the tangent line. The set of all circles orthogonal to the circles of a parabolic pencil is a parabolic pencil.
In the figure above with the two pencils, tell how the same constructions have different meaning in different models.