Shin Jong-kyun, President and CEO, head of IT and Mobile Communication division of Samsung, presents the Samsung Galaxy Gear smartwatch during its launch at the 'Samsung UNPACKED 2013 Episode 2' at the IFA consumer electronics fair in Berlin, on Wednesday. BERLIN – Samsung unveiled a highly anticipated digital wristwatch Wednesday. The so-called smartwatch is what some technology analysts believe could become this year's must-have holiday gift. Samsung unveiled the Galaxy Gear on Wednesday in Berlin ahead of the annual IFA consumer electronics show. Samsung said the Gear can act as an extension to a smartphone by discreetly alerting users to incoming messages and calls on its display screen, which measures 1.63 inches diagonally. Users can even make calls, secret agent-style without getting out their phone. The Gear also sports a basic camera and works with popular social media and fitness apps such as Twitter and RunKeeper. The Android-powered device starts shipping in most countries Sept. 25 starting at $299. It will be compatible initially with two Samsung products also unveiled Wednesday — the Galaxy Note III, which is a smartphone with a giant 5.7-inch screen and a digital pen, and the Galaxy Tab 10.1, a tablet computer with a 10.1-inch screen comparable to Apple's full-sized iPad. With smartphones and tablets now ubiquitous, electronics companies are trying to create a new category of products to lure consumer spending. That includes building advanced computing technology into everyday objects such as wristwatches and glasses. Sony introduced its latest SmartWatch in June and unveiled an update Wednesday. Google is working on Google Glass — a device designed to work like a smartphone and worn like a pair of glasses. Apple has an event scheduled next Tuesday, during which it is expected to unveil an iWatch and new iPhones. — SG/AP