Samsung defends its crown as the world's top smartphone maker, unveiling a new premier smartphone in the face of tougher markets and a rising challenge from China.
On Monday, the opening day of the four-day Mobile World Congress in Barcelona, the South Korean giant launches its flagship device, almost certainly a Galaxy S5 smartphone rumoured to be equipped with a fingerprint scanner and larger screen.
Samsung's brand was stamped on more than 30 per cent of smartphones sold in the world last year, about twice the share of archrival Apple, which traditionally skips the world's largest mobile fair.
Despite Samsung's dominance, early signs are emerging of difficult times ahead.
A 42.3 per cent surge in smartphone sales to 968 million units last year was propelled almost entirely by developing markets, according to research house Gartner Inc.
The worldwide boom disguised a slowdown in the mature markets such Western Europe and the United States, which are the most profitable, it said.
As a result, smartphone makers are scrambling for new sources of revenue.
"We will see all of the handset companies responding to slowing growth in the smartphone market and the difficulty of making money," said Ian Fogg, senior principal analyst of electronics and media at research house IHS.
"They are going to launch a number of smart accessory devices including wearable devices that will give them opportunities in new markets to generate revenues and growth."
Samsung thus launched an updated smart watch, the Gear 2, on Sunday, adding new features and ditching Google's Android in favour of its own operating system.
Besides an array of features including sports tracking software and a heart rate monitor, the Gear 2 marks an important and widely anticipated step towards independence from Android.
But Samsung faces other significant challenges, too, notably from China.
Indeed, hours after Samsung launched the Gear 2, rising Chinese smartphone maker Huawei revealed a connected watch of its own.
Huawei, already a major force in building mobile networks and the world number three smartphone maker in 2013, showed off its TalkBand, to be sold for 99 ($A152).
Connected by Bluetooth to a smartphone, the watch lets you receive calls and messages without removing your mobile from your pocket, as well as measuring the steps you take with a podometer and even following your sleep pattern.
Facebook's 29-year-old founder Mark Zuckerberg is the star speaker on the opening day of the fair in Barcelona, fresh from his $US19 billion ($A21.22 billion) takeover of smartphone messenger WhatsApp.
