Microsoft reportedly has begun building a smartwatch to compete against smartwatches from its biggest rivals in the mobile world: Apple, Google and Samsung. Believe it or not, Microsoft was ahead of the curve and debuted a smartwatch back in in 2004. It was called SPOT (Smart Personal Object Technology) and used FM radio broadcast signals to send information to the watch. The watches were built by Fossil, Swatch, Suunto and Tissot, and were able to send instant messages, receive news headlines, weather forecasts, stock information, sports scores and downloadable watch faces. Microsoft canceled the service last year, but will apparently be returning to the business.

The Wall Street Journal is reporting that Microsoft is currently working on a new smartwatch. Sources have told the publication that Microsoft asked Asian suppliers earlier this year to ship components for a "potential watch-style device." When asked about the project, Microsoft politely declined to comment.

The smartwatch prototype is believed to have a 1.5-inch touch display, according to a component supplier. There is no word on which OS will power the watch, but it will almost certainly be a stripped-down version of Windows Phone OS, since the smartwatch will likely be very dependent on a smartphone and Microsoft will want to tie in many of its Windows services to the device. It is unclear when Microsoft will bring the smartwatch to market, but it already has the experience and know-how to build a smartwatch. Do you think smartwatches are the next big thing? Let us know in the comments.