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Now do you finally see why I like my S so much? The things you're imagining now are what I have now, including 4g, a-GPS as well as Wi-Fi .There is talk that a low-power WIFI may be available and that this chip is compatible. The talk is that it would actually consume less power than BT4.0 AND provide faster connectivity and communication while maintaining backward compatibility and consistent connection. In theory, it could effectively either replace Bluetooth for the connection between it and the watch, or possibly supplement it so that BT is left to maintain the harness while WiFi does the heavy lifting.
The obvious other possibility is that WiFi compatibility would give it the ability to communicate with the internet directly, pulling feeds, emails, even possibly remaining tethered to the phone if left home. Imagine, being able to leave the phone home, and STILL being able to make and receive phone calls? The watch could connect to your headset, and the watch would be an extension of the phone WITHOUT 4GLTE but instead using the 4GLTE that's coming from your phone sitting in the charger at home, and connected to your home WIFI network.
And yes IT IS VERY COOL to leave the phone at home and still be in full communication including a web browser.
Once the general masses see that AW just took a leap forward, and I'll bet the next generation of AW will have phone capabilities as well, they'll start to see what we saw last year. And without needing a Samsung phone or expensive app to make it work completely!