The consumer electronic market runs on an annual cycle. After a device has been on the market for a year, the company will then introduce a newer model. For Samsung’s smart watch, the wait for a new model may come even sooner.

Korean news site Daum reports that the Galaxy Gear shown off earlier this month in Berlin at IFA was merely a test device to see how the market would react. Samsung will use the feedback it receives and then introduce a new Galaxy Gear smart watch early next year at either CES or Mobile World Congress.

So, why would Samsung already be working on a new Galaxy Gear when the first iteration isn’t even out yet? For starters, Samsung saw that the initial response to its smart watch wasn’t entirely positive. Many who were at the show pointed out that the Gear didn’t have a long enough battery life, had input lag and cost too much. It didn’t help matters that the Galaxy Gear only supports two devices – the Galaxy Note 3 and the Galaxy Note 10.1 – at this time.

With the next Galaxy Gear reportedly already being worked on, what kind of improvements will Samsung include with the next iteration? That much isn’t known at this point, but we can make a few educated guesses. For starters, Samsung needs to work on improving the battery life and the list of devices that the Gear is compatible with. It needs to move outside of its own devices and make the Gear compatible with a wide variety of Android devices. It can promise additional functionality with its own devices, but keeping it exclusive to Samsung devices in an open Android ecosystem is foolish.

Samsung will also have to work on the price if it wants to be competitive in what may become a large segment of the consumer electronic market in coming years. Apple and Microsoft will both be rolling out their own smart watches within the year, and Samsung has an opportunity to capitalize on the millions of Android devices currently on the market with its own smart watch. A competitive price will ensure that it can tap into the ever growing Android market more readily.

Despite these reports, the current Galaxy Gear will still go on sale in October for $300. Before picking one up, you might want to wait until early next year to see if these reports come to fruition.

[Image: Samsung]
[h/t: The Guardian]