(Pocket-lint) - Apple is reportedly working with Intel on a Bluetooth smart watch. The iWatch (for want of a better name) will hook up to an iPhone or iPad and feature a 1.5-inch OLED RiTdisplay screen.

The news comes from Chinese website TGBus, which reports sources within the supply chain say the device is already in an advanced stage and that its launch is expected in the first half of next year. The sources have also revealed that it will sport a touchscreen front, much like the sixth-generation iPod nano.

Indeed, it may be Apple rethinking a move away from a small square-like device for its current iPod nano range that has prompted a move into the smart watch market. Last year's nano, after all, doubled nicely as a wristwatch, with many accessory manufacturers creating straps to house it. A dedicated Apple iWatch would keep the entire production of a similar device in house.

That or it's complete tosh.

If true, the Apple iWatch will have to compete with several other devices, including the Casio G-Shock GB-6900, which talks via Bluetooth to all manner of devices, not just iPhone, and is now available in the States. Something tells us, however, that an Apple variant would be extremely popular.

Pic: iWatch concept by ADR Studio

Writing by Rik Henderson.