The competition and rivalry between tech giants Apple and Samsung in the gadgets markets is immense. The rivalry may increase even further as both companies are expected to release smartwatches, and now Samsung also confirms that it is working on a smartwatch.

Various rumors have indicated that Apple may introduce a smartwatch soon; however, the Cupertino company has not confirmed that it is working on such a gadget. On the other hand, a senior executive at Samsung has confirmed the company has a smartwatch.

"We've been preparing the watch product for so long," said Lee Young Hee, executive vice president of Samsung's mobile business, during an interview in Seoul. "We are working very hard to get ready for it. We are preparing products for the future, and the watch is definitely one of them."

The smartphone market has been driven by strong demand from consumers but currently, not many are aware of a smartwatch and its advantages. Maybe businesses do not want to be the first ones to dive into deep waters.

"The issue here is who will first commercialize it so consumers can use it meaningfully," Lee added.

However, as Apple and Samsung both have deep penetration in mobile devices like smartphones and tablets, another mobile device in the ecosystem may make sense to many consumers.

The pricing of smartwatches may also play as vital role in commercializing the newest gadget. Many buyers might not want to spend a lot of money on a gadget, which they don't know will have a lot of use.

"Pricing wristwatch-like devices under $200 will be one of the keys for developers," said Laurence Balter, chief investment strategist at Oracle Investment Research in Fox Island, Wash. He estimated that one-quarter of existing users of Samsung smartphones and tablets would be interested in using a watch-like device, reports Bloomberg.

How much will you spend for a smart watch?