SEOUL, South Korea - After launching its first Android phone, world's third-largest handset manufacturer LG is now believed to be working on updating its watch-phone series. A successor to the manufacturer's first Android handset, the GW620, is also under the cards. The latter is rumored to be powered by Qualcomm's 1 GHz Snapdragon processor, pushing it alongside the Sony Ericsson Xperia X10 in the high-end Android segment.

The LG's Watchphone GD910 was the world's first market-ready 3G phone of its kind when it was first announced January this year. The device, which is presently shipping in the UK under contract from service provider Orange, hasn't caught the market attention LG was hoping to receive for its ultra-compact mobile phone, combining the features of a phone and a watch.

To get some much needed market exposure to this new segment, LG is believed to be now working on an update for its GD910. Further, John Barton, UK sales and managing director, announced earlier this month that new styles will be added to the present lineup of watch-phones from LG, fueling the rumors on update for GD 910.

With global economies showing signs of recovery, manufacturers are trying to cash in on the positive market mood. Further, with the holiday season closing in, manufacturers are gearing up for the shopping season of the year, with a number of new launches and updates. Whether the recent positive trend in the market translates into improved sales and returns for the manufacturers remains  to be seen.