Microsoft Working With Suppliers on Designs for Touch-Enabled Watch Device

　　Microsoft Corp. MSFT -0.35% is working on designs for a touch-enabled watch device, executives at suppliers said, potentially joining rivals like Apple Inc. AAPL -2.32% in working on a new class of computing products.
　　Earlier this year, Microsoft asked suppliers in Asia to ship components for a potential watch-style device, the executives said. One executive said he met with Microsoft's research and development team at the software company's Redmond, Wash., headquarters. But it's unclear whether Microsoft will opt to move ahead with the watch, they said.
　　Microsoft declined to comment.
　　Some investors and big technology companies are betting on a boom in wearable, computerized devices built around the growing power and slimming size of sensors that can detect body temperature, geographic location and voice commands of people on the go.
　　Some of the new wearable gadgets, like Nike Inc.'s NKE -1.50% FuelBand, measure physical activity, while others are intended to supplement functions of a smartphone, such as receiving text messages, taking photos or checking the weather. Apple has also experimented with designs for a wristwatch-style device, The Wall Street Journal reported earlier this year.
　　Startup Pebble Technology Corp. is selling a watch that syncs wirelessly with smartphones and vibrates to alert wearers to incoming phone calls, Twitter posts and emails. Google Inc. GOOG -1.03% is testing with consumers a device it calls Google Glass, an eyeglass-style gadget that displays certain computerized information in a user's field of vision.
　　"We see growing demand for wearable gadgets as the size of the smartphone has become too big to carry around," said RBS analyst Wanli Wang. "A smart watch that is compatible with a smartphone and other electronics devices would be attractive to consumers."
　　Research firm Gartner expects the market for wearable smart electronics to be a $10 billion industry by 2016.
　　This isn't the first time that Microsoft has shown an interest in wearable gadgets. Microsoft a decade ago unveiled a "Smart Watch" powered by the company's software. For a subscription fee, Smart Watch wearers could have news headlines, sports scores and instant messages beamed over FM radio to their wrists. But sales stopped in 2008.
　　For its potential new watch prototype, Microsoft has requested 1.5-inch displays from component makers, said an executive at a component supplier.
　　The tests of a computerized watch also underscore Microsoft's ambitions in expanding its hardware offerings. Last October, Microsoft launched the Surface tablet-style computer, and the company is prepping more homegrown computing devices including a smaller, 7-inch version of a tablet to compete with popular gadgets like Apple's iPad Mini, people familiar with the matter have said.
　　Microsoft also is continuing to test its own smartphone, although it isn't clear whether it will bring such a device to market, component suppliers said.