Connected Experiences, Inc., the business arm of Qualcomm Inc. (QCOM - Free Report) , has recently unveiled a smartwatch, Toq. The smart device is expected to be shipped from mid-Oct.
Though Toq is neither a smartphone nor a tablet, the device can synchronize with the user’s smartphones, enabling texts, phone calls and alerts from Facebook and Whatsapp.
Samsung has launched a similar smart accessory – Galaxy Gear smartwatch – with Qualcomm. To remain competitive, we expect Qualcomm to price the smartwatch around Samsung’s device which costs $300.
Toq’s screen has Mirasol display technology, thereby allowing clarity in display even in daylight. It is powered with Qualcomm’s 200 MHz Cortex M3 processor and is compatible with Google Inc.’s Android devices. It is also expected to support Apple Inc.’s (AAPL - Free Report) devices in the future.
It is available in black and white with a wireless Bluetooth headset and battery charger. Qualcomm will bring limited numbers of its much-hyped smartwatches initially to create market demand for its advanced technology.
Most high-end smartphones are powered with Qualcomm’s Snapdragon processors as the company is one of the leading suppliers of LTE-based chipsets. The popularity of these processors will further gain traction as the recently-launched handsets like Samsung Electronic’s Galaxy S4, Sony Corp.'s (SNE - Free Report) Sony Xperia Z and BlackBerry Limited’s BlackBerry Z10 are using Qualcomm’s chipsets.
In the recently concluded third quarter of 2013, Qualcomm shipped approximately 173 million CDMA-based MSM chipsets, up 14% year over year.
Currently, Qualcomm carries a Zacks Rank #3 (Hold).