After months of anticipation, Samsung's much-hyped Galaxy Gear is unlikely to be a game changer for the South Korean consumer technology giant, say market watchers, even after the company beat rival Apple to the punch with the launch of its inaugural smartwatch in Berlin Wednesday.
The smartwatch is an "expensive accessory" with a limited target market given its $299 price tag, said Daniel Kim, analyst at Macquarie. The device, which must be paired with a Samsung phone or tablet, can make calls, receive emails, take pictures, run its own apps and has a voice control function.
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"I have been skeptical about the smartwatch market. How many people will pay $299 for a nice accessory, and how many people will replace their existing watch for this smartwatch. I'm not sure," Kim told CNBC on Thursday. For example, the price point of the Galaxy Gear is double that of the Pebble – a popular Kickstarter-funded smartwatch that sells for $150.
"The screen size is 1.6 inches. There aren't many things you can do with this screen," he added.
(Read more: Samsung reveals smartwatch, new Galaxy Note)
Samsung expects to sell half a million smartwatches in the second-half – a small fraction of the average 25 million premium smartphones it sells each quarter, according to Kim.