Apple may be in the process of creating its very own smart watch that connects to iDevices via Bluetooth, according to a new report.

The iPhone maker will reportedly be collaborating with Intel to develop the smart watch, which will sport a 1.5-inch PMOLED (Passive Matrix Organic Light Emitting Diode) display made by RiTDisplays with ITO-coated class. Apple has had a small hold on the market for a while now, thanks to its tiny iPod Nano, which can be easily attached to a wristband and turned into a full-functioning watch.

Smart watches, however, have become increasingly popular recently. Sony has its Smart Watch, and the Pebble fired up Kickstarter with its e-paper Smart Watch that connects to Android and iOS devices. According to Tech.163, Apple wants to join the party with a smart watch offering of its own.

As users are increasingly requiring more connectivity, an iPod Nano with no Bluetooth connection to a user's smartphone or tablet is less desirable than such smart watches currently available on the market. The past year has seen plenty of speculation over when or if Apple will join the Smart Watch race, but the new report is one of the first somewhat-substantiated leaks.

On the other hand, the new report is still unofficial, so take things with a grain of salt. Even if Apple is indeed working on a smart watch, it will be a while before any real evidence of the gadget actually emerges. Moreover, not even the success of Pebble and MetaWatch can guarantee the market for smart watches is a successful one.

Apple is expected to launch its smart watch later next year, according to the report. Should this prove to be true, Apple may be adding valuable expertise to the market. While many have already embarked on the smart watch race, Apple has its way for making niche devices mainstream, even if the device per se is not revolutionary. The iPad, for instance, entered the market at a time when everyone was wondering whether tablets would actually be used in everyday life. Needless to mention, Apple proved they would.

Should this report prove to be accurate, Apple will likely do the same thing with the smart watch concept. Low-power Bluetooth 4.0 makes wearable technology practical, and Apple's software ecosystem and design touch may appeal to a wider audience. Until Apple makes it official, however, the purported smart watch made in collaboration with Intel remains in the rumor stage.