The following article reviews Sony’s new smart-watch and points out its major advantages and disadvantages. The new product released by Sony is aimed at competing in the new and very recent market for smart-watches, created as part of the major technological innovations in the previous years. The smart-watch incorporates the old fashion features of a watch and new integrations with smartphones, such as answering calls and replying to text messages. The new product released by Sony has little if no points of difference. According to the article it does not perform significantly better than its competitors, and has no new and innovative features other smart-watches don’t offer. However, as Sony is a large and experienced company their costs of producing this product are much lower than other firms, thus still allowing them to be competitive, not on innovation, but on price. Sony’s economies of scale allows it to sell the product 33% cheaper than their main competitor Samsung, thus compete on the market in spite of the fact that they entered relatively late. As of this moment, it seems as firms will start competing on prices in the market for smart-watches, until one of the competitors will manage to incorporate a new breakthrough in this market.