LG has unveiled Touch Watch (LG G910), which Bluetooth and 3G technology as well as a touch screen.

The handset will be launched through Orange in the UK later this year. The hope is that a device that allows consumers to talk directly into the watch will counter the general slump in demand for mobile phones.

Consumers will also be able to make video calls and use voice recognition technology to look up numbers. As well as usual phone features, the watch can also read text messages and other information aloud and play back music files.

Dr Skott Ahn, president at LG said, said, "LG is the first company to introduce a mobile phone with the wearable device technology. We will continue to develop category-creating products to form a new market, based on our technological leadership and design capability.