Report: Sony making a watch out of e-paper

Sony is said to be developing a watch made out of electronic paper that will emphasize style over technology, according to a report.

Sony Corp. told CNBC that it declined to comment on the content of the report but could "confirm that a project team named Fashion Entertainments located in the New Business Creation Department of Sony Corporation is working on prototypes that use electronic paper including a wrist watch."

Akio Kon | Bloomberg | Getty Images

According to International Business Times, the new e-paper smartwatch will reportedly be the first major product to come out of Sony's new business creation division, formed earlier this year by Sony CEO Kazuo Hirai. The division was created in order to promote and renovate Sony's history of innovation.

Patrick Moorhead, principal analyst at Moor Insights and Strategy, said that "using e-paper technology doesn't necessarily solve many of the problems holding back the smartwatch market. In fact, Qualcomm already has a watch made with Mirasol technology, so it's not as if this is something new. Using an e-paper material helps with battery life and thickness, but that's about it."

"The Apple Watch, while pricey, does solve most of the issues with smartwatches today," Moorhead adds.

Sony declined to comment on specifics, such as the possible commercialization of this project, or any targeted product launch date.