Wednesday, September 4, 2013

[TECH TALK]: Samsung UNVEILS SMARTWATCH TO POWER GALAXY NOTE SALES


(Reuters) - Samsung Electronics Co Ltd unveiled a smartwatch on Wednesday that works as an accessory to its market-leading Galaxy smartphones, with a small screen offering basic functions like photos, hands-free calls and instant messaging.

The world's top handset maker hopes the Galaxy Gear will boost the appeal of its range of Android-powered smartphones, as it battles to maintain its supremacy in the rapidly saturating high-end mobile market against arch rival Apple Inc.

Its launch, timed to coincide with the start of the IFA consumer electronics trade show in Berlin, also signals that the South Korean giant is more than just a fast follower in innovation behind Apple, which is preparing to release a new iPhone next week but is yet to go public with any wearable devices.

"It's a companion device that will keep us constantly connected," Samsung Executive Vice President of Marketing Lee Young-hee told reporters in Seoul ahead of the smartwatch's launch. Her remarks had been embargoed until Wednesday.


The success of Samsung's latest smartwatch - clunky earlier versions in 1999 and 2009 didn't go down well with consumers - will be measured as much in how it affects sales of high-end Galaxy smartphones as in sales of the device itself.

But it is also a shot across the bows of Apple and Google Inc, which are widely believed to be working on their own wrist-worn devices in what analysts expect to be the next phase of the mobile communications boom.

"We had smartwatch-type products before, but they were mainly for making phone calls. What's different with the Gear is it's got far more useful functions. It's usability has increased significantly and design is not bulky," said J.K. Shin, Samsung's co-chief executive and head of mobile business.

The Gear, which will go on sale later this month for $299, doesn't have a flexible or curved display that some industry watchers had hoped to see on Samsung's newest products.

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