Samsung Electronics Co. Ltd (KRX:005935) might unveil an innovative model of its smartwatch and a health and fitness wristband during the Mobile World Congress next year.

The South Korean electronics manufacturer is reportedly developing Galaxy Gear 2, a smartwatch better than the Galaxy Gear to provide the best experience to tech savvy consumers. Samsung Electrnonics Co. Ltd (KRX:005935) is also building its own health and fitness wristband known called Galaxy Band.

Observers in the technology industry opined that the Samsung Galaxy Gear in just a public beta product and the company is set to release an innovative device designed to compete with the smartwatch market.

There had been reports that the sales of Samsung Electronics Co. Ltd. for the Galaxy Gear is weak partly because of its high price tag at $229 compared with other available smartwatches such as the Pebble at $150 and Sony Smartwatch 2 for $199. The Toq smartwatch from Qualcomm Inc (NASDAQ:QCOM) is more expensive at $350.

There is a great possibility that the Samsung Electronics Co Ltd (KRX:005935) will unveil the Galaxy Gear 2 smartwatch in 2014. The Korean Herald reported that the company preparing for the launching of the device at Mobile World Congress in February next year based on information from sources familiar with the situation. The Galaxy Gear 2 is expected to feature a flexible OLED display.

In addition, Lee Seung-wool analysts at IBK Securities said, “Samsung is currently working on the Galaxy Gear 2, and the product will be surely released early next year.”

Samsung Electronics Co Ltd (KRX:005935) is also expected to introduce the Galaxy Band to compete with other health and fitness wristbands such as the FuelBand from Nike Inc (NYSE:NKE), and the Samsung Galaxy S5 during the event.