Chinese blogging site Tech163.com reports that Apple is in the process of creating a smartwatch, to be released sometime in the first half of 2013.

Tech163.com states that Intel is teaming up with Apple for this project. The smartwatch would equipped with Bluetooth, Apple’s iOS, and a 1.5 inch coated glass screen. It would have the ability to connect to Apple iOS devices, most notably iPhones and iPods.

At this point there is nothing but speculation about additional features that may be included. However, a demand for smartwatches already exists, based on the success of Pebble’s Kickstarter campaign.

Pebble’s Kickstarter campaign has raised over $10 million from nearly 70,000 supporters. Pebble is a smartwatch that can connect directly to your iPhone, iPod, or Android device via Bluetooth. Apps can be downloaded to Pebble to allow “wearable” control of your device.

Apple fans have already had a taste of an Apple smartwatch with the iPod Nano. Third party suppliers created wristbands that fit the square shape of earlier models. The iPod Nano could display time, photos, and track fitness statistics on top of playing music.

Do you think this rumor will pan out? If an Apple smartwatch becomes a reality, would you be likely to buy one? Share your comments with us in the section below!