Samsung's announcement also follows a report from Business Korea, which said that Samsung had only sold 50,000 Galaxy Gears to date.
Samsung has been trying to promote its new gadget through heavy advertising campaigns after the device got off to a rocky start after being critically panned by reviewers.
The $300 Gear works as an accessory to the Galaxy smartphone, with a small OLED screen offering basic functions like photos, hands-free calls and message notifications.
With Gear, Samsung attempts to prove that it is more than just a follower in innovation behind Apple, which is also widely speculated to be working on wearable device.
Samsung has recently expanded the compatibility of the Gear with more Android-based devices.