Microsoft (Nasdaq: MSFT) is also planning to challenge Apple (Nasdaq: AAPL) and other consumer tech companies with what some argue is going to be the largest thing to hit the segment since next-generation smartphones began to appear in 2007.

The WSJ reported over the weekend that Microsoft is working on a "smart" watch, or wearable computing device. The company was said to ask suppliers in Asia to ship over components for such a device, though it wasn't made clear whether or not production of the watch would commence. Initial speculation calls for a 1.5-inch display size.

Some weeks ago, Samsung was also said to be working on a smart watch, while Google (Nasdaq: GOOG) has been working on its Google Glass wearable computing device.

Growth in the smart watch market will be strong; reserach firm Gartner recently said it expected the market to draw $10 billion in revs by 2016.

Shares of Microsoft are down early Monday.

Insiders' Blog

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