Who Want's a Smartwatch?

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Sept. 4 (Bloomberg) -- CLSA Senior Analyst Ed Maguire and Bloomberg Contributing Editor Paul Kedrosky discuss wearable computing with Erik Schatzker on Bloomberg Television's "Market Makers." (Source: Bloomberg)

On "market makers," -- always party time.

You might be able to send e- mail, do web surfing, use voice functionality, play some games -- stuff you would be doing on your phone.

We cannot say with certainty.

I have noticed health related devices.

Certainly, the samsung positioning of this is for the healthy crowd as well.

They are hoping it will have mass appeal.

Q are there enough people that actually want to -- are there enough people that actually want it?

The market expects explosive growth on a smaller scale.

We have watched how quickly the tablet market has grown, and we did not know what the tablet was going to be.

That is why people are paying attention.

While samsung gears up for its big event, some are left wondering if the wearable business is worth the fight.

Our next guests say perhaps not.

Ed maguire, a senior analyst who follows this industry closely, and paul kedrosky with us from san diego.

Ed, let's begin with you.

Why is it not worth the fight?

The smart watch market is not anything new.

They have been with us for 35 years.

The calculator watch?

I think i had one as a geek in high school.

The idea of embedding computer power on a wrist device has to be justified and we see that an appliance factor works well.

The aspect of watches that tells time, in many respects they are a fashion accessory.

They do not lend themselves to the standardization you see in computers.

What is the current smart watch?

There have been a wealth of projects on kick starter.

The basic smart watch, you see some out of sony and many others, that offer functionality -- when your cell phone is in your pocket, they will tell you who is calling you.

Jon erlichman, do you know anyone that wears one on the west coast?

Samsung might have an edge in the sense they have the largest smartphone share in the world if you tether that back to the wristwatch.

Paul, jon erlichman mentioned the watch would allow you to do web surfing, which seems preposterous with a screen that size, if you look at the smartphone market -- smart watch market, what will be the killer app be?

Recycling?

Good one.

I have to say, this is a showstopper.

Board meeting stop in introductions.

After that, when people get past the design, able do not know what to do with it.

For other folks that are not really that interested in tracking what their heart is doing, which is probably most of us, there is not really an obvious application and these things start to sound like a stretch.

These things are done on my phone.

Why do i need a second device?

It is a difficult category.

My guess is samsung is messing about, try to see if they can get to the market first, in case there turns out to be a real market.

My suspicion is, quite honestly, there is not.

There is a bizarre experimentation.

What was the immediate response when the first smartphone came out?

I think this is very different.

Predating the iphone, there was the transformational sense that it absorbed functionality functionality that was in a series of devices -- calendar devices, phones, internet- connected devices -- it absorbed all of these features.

That is not the case with the smartphone.

It is not clear that it is absorbing functionality that is languishing in other things.

It is the reverse, pushing you to do things you never thought was important in the first place . paul kedrosky, let's put that question to ed maguire, and in business, creating a solution in search of a problem, terrible idea?

It is a strategy for a niche market.

There are relevant use cases coming out of medical use and athletics.

If you tie them into games, it is a great way to have social involvement, but if you are a quantified self-geek and you want to look at every aspect of your day, this would be appealing, but more broadly it will be hard to make a case it will be something everyone has to own.

It is why these things have to be sold and messaging has to be very simple.

The concept of you being able to keep your phone in your pocket, and not having to get it, and get most of what you would get on your phone just updating yourself quickly might actually be the killer app outside of recycling.

How think about it do you bust your phone if it is in your pocket?

If it is on my wrist, i am going to smash this thing into everything around me constantly.

I do not get the aesthetic that says i need to have this in constant display because it will get stolen, smashed, broken and lost.

Given how small it is, would you think about web surfing.

One of the reasons i use an iphone is because my blacks -- like very is so small -- blackberry is so small i cannot serve.

The dick tracy watch was a great idea in the 1930's, but when you get to reality and you can have giant screens you unfold from your pocket, it is hard to make a case.

Paul is suggesting that maybe hamlet's ra side product -- helmets are a side product.

May be a visor.

We are taking geeks to a new level.

Thank you.

Ed maguire, paul kedrosky , and jon erlichman, our senior west coast correspondent.

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

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