According to a report, Microsoft is working on a touch-enabled watch device. This would put the company in the running with Apple and Samsung for making a new class of wearable technology.

These supplier executives in Asia were said to have shipped components for a potential watch-style device. Microsoft’s research and development team met up with one of the supplier executives in Redmond, Washington.

However, what is not clear is whether or not Microsoft will move forward with any plans. Microsoft, for its part, declined to comment.

“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.”

Microsoft is said to be looking into smaller devices, like a Surface tablet with 7-inch displays. Gartner research firm expects the market for wearable smart electronics to be a $10 billion industry by 2016.