Tech giant Apple is working with Intel to manufacture a 'smart watch', a Chinese gadget blog has claimed.

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According to the report, the Bluetooth watch would debut sometime in the first half of 2013.

Consumers have previously used the sixth-generation iPod Nano as a watch, with third parties producing wristbands for the product, News.com.au reports.

According to the report, TechCrunch writer Jordan Crook, however, said he was taking the news with a grain of salt.

He pointed out that if the iPhone maker is manufacturing a watch, it would be quite a while before we see any real evidence of it.

He also said that there's no proven market for smart watches yet.