Mobile-phone company SMS, based in Hong Kong, has put the finishing touches on a product that will make every Dick Tracy fan's eyes light up. The SMS M500 GSM Watchfone is billed as the world's smallest mobile phone, and is tiny enough to be a very attractive watch. Most TV or phone watches to date have been bulky, heavy, and unattractive, but SMS has managed to make a watch/phone hybrid that actually looks nice as well as tells the time.

But going Dick Tracy's two-way radio watch several notches better, the SMS M500 is also a fully functioning GSM cellphone that can dial anyone anywhere in the world. The device weighs only 60 grams, is water-resistant (not waterproof), and can play MP3 and AAC audio and MP4 video. The M500 has a 1.5-inch touch screen with an included stylus, 128MB of flash storage, and Bluetooth so you can pair a headset and don't have to speak directly into the watch if you don't want to. SMS claims the battery gives 200 minutes of talk time or 80 hours of standby before recharging via USB.

The SMS M500 has FCC approval, so expect it to start showing up in American electronics stores any day now. Pricing has yet to be announced.

{Via Engadget ]