Smartwatch competition intensifying

Apple Watch expected to give boost to Samsung, LG watches

By Bahk Eun-ji

It is not uncommon to see people wearing smartwatches these days. With Apple joining the “war of the wrist,” the competition among tech giants to grab a bigger share of the burgeoning smartwatch market is getting more fierce.

Analysts said Samsung Electronics, LG Electronics and other electronics companies will invest more to develop new smartwatches that are equipped with more appealing functions and features.

They expect the Apple Watch to help draw greater public attention to the devices, contributing to the growth of the overall smartwatch industry.

Apple’s first smartwatch has become a sensation, as its first round of pre-ordering online reached the pre-set limit in six hours in the United States on Friday.

Customers now have to wait at least a month to get next batch of the devices that can be ordered. The most expensive variant of the new device, the gold Apple Watch, sold out in an hour in China.

Global mobile handset manufacturers have been looking for new growth engines with the wearable devices, as the smartphone industry is already saturated.

Analysts say smartwatch manufacturers still have to convince customers why they should purchase the wearable devices.

They agree that the market segment will begin to grow rapidly, with the launch of Apple Watch accelerating the race.

“Apple will find the key value of the watch in the health care sector, although it will take time to become popular,” said Kim Hae-yong, a tech-analyst at NH Securities.

Kim Yang-jae, an analyst at KTB Investment said the Apple Watch is not much different from the existing devices of its competitors, but will still attract customers not only as a smart item, but as a fashion accessory.

“Although it is not different from other smartwatches from the hardware prospective, Apple fans will choose it as it provides different software and operating systems from android versions,” Kim said.

LG Electronics has unveiled the LG Watch Urbane.

LG has been confident about the Urbane series in terms of its design and features. “The first all-metal luxury Android Wear device,” has a round, stainless steel body.

Samsung Electronics has also been solidifying its dominant position in the smartwatch market by releasing six models, which once accounted for almost a 70 percent share of the market last year.

The company had been rumored to unveil its next smartwatch, dubbed Project Orbis, at this year’s Mobile World Congress (MWC) in Barcelona, Spain, which wrapped up last month.

However, it did not unveil the new device at the show, in what was seen as a strategy to focus more on the Galaxy S6 smartphone.

Samsung’s mobile chief Shin Jong-kyun said it has prepared a new superior wearable device, as the company has been a pioneer of wearable devices with the release of the Gear series.

The Orbis, Samsung’s next smartwatch, gave a hint that the device will be circular, unlike its wristwatches ― the Gear series ― under the strict concept of a smart device rather than a traditional wristwatch.

Orbis is a Latin word that has many meanings including circle.

The watch will reportedly run under the Exynos 7420 CPU, the same chip that powers the new Galaxy S6.

It will also support Samsung Pay, the mobile payment system run by magnetic secure transmission technology.

Some industry watchers say Samsung postponed the new watch’s launch, as it wanted to see how consumers responded to Apple’s smartwatch.

Research firm Strategy Analytics forecast global smartwatch shipments will grow 511 percent to 28.1 million this year, up from 4.6 million last year. It also estimated shipments of the Apple watch will reach 15.4 million.