Samsung Galaxy Gear Watch No Slam Dunk: Grobart

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Sept. 4 (Bloomberg) –- Bloomberg’s Sam Grobart discusses Samsung’s new Galaxy Gear smartwatch and its cost of $299. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Welcome back.

I am emily chang.

The news of the day is samsung unveiling three new products, including their smartwatch.

You are in a unique position to talk about these developments, given that you have visited samsung headquarters in south korea.

We just heard brian raving about the smartwatch.

What do you think?

I have to go ahead and disagree with him over there right now.

I think once upon a time, somebody wrote a dick tracy cartoon that there is going to be a watch phone, and ever since then, we have been chasing that dream, but it is not clear how it is going to work.

If it has to work with your phone, now you are carrying two things, and we generally expect watches to work all the time, as they have since the 18th or 19th century, so this idea that it is more complicated may bring in more complications, and i am not really sure it is a slam yet.

You have brought up the very disciplined approach of samsung entering new markets.

Bringing this in now, head of apple, -- before apple.

The samsung operation is incredibly efficient and disciplined, and it moves very quickly.

Now, you have to put this watch into context.

Think about smartphones.

The average price of the smartphone continues to drop quarter after quarter after quarter.

Samsung, like any company, needs to find new opportunities for other devices that are going to keep earnings up, as there is a general race towards the bottom towards the cheapest devices.

We saw this happen with the pc.

Something looking for other opportunity, to spread out some of that softness.

So a 200 $99 watch, that does not do it for you?

-- a $299 watch?

Does that make it a more attractive option?

Or is that too expensive?

I think that is pretty high.

A whole phone normally runs you about $200, so when you think of something you will want to use with a smartphone, it is an excessively that cost more than the main device.

Again, i think it limits some of the appeal among some of the hard-core tech people.

One more thing which the twittersphere has been not so happy about.

A 10 inch tablet.

Come on.

What do you think of the fact that he dropped that line?

Does samsung have its own steve jobs figure?

I tell you what, that was hard-core, going up there and dropping that line.

You would not want to do that if you are playing steve jobs, unless you are ashton kutcher.

I do not think he has been like steve jobs for apple.

But this has not necessarily been his strong suit in the way of jobs.

He is more of an overall operational genius.

How that factors down to the product relies on other people, as well.

You have mentioned design.

You have been to samsung and have seen the design process firsthand.

Tell us how you suspect the smartwatch was designed, as well.

If we want to use a comparison, it is extremely different from what apple does.

Apple tends to look at itself for inspiration, and samsung looks out.

They go out into the marketplace.

They are constantly surveying their users and collecting all of this data, and then they come back and work very quickly because they have that vertical integration, so if they need apart, they probably make the part.

You can probably call up their buddy at the other end of the plant and get that part, so it moves very fast, and they are able to work in a very agile fashion.

If this watch does not work, samsung will react quickly and come up with something that does.

You will be here for the apple event on september 10. we are expecting one or maybe two new iphones to be unveiled.

With what you saw today, does

This text has been automatically generated. It may not be 100% accurate.


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