Apple Inc. (NASDAQ:AAPL) loves a good competition and now they have another with Microsoft Corporation (NASDAQ:MSFT). Both tech giants reportedly have plans to release smart watches and there is a definite race to see which company can release the watch faster.

Apple iPad vs Microsoft Tablet

It’s reported that Microsoft Corporation (NASDAQ:MSFT) executives are working on specific designs for their reported touch-enabled watch.  This all comes months after reports of Apple Inc. (NASDAQ:AAPL)’s experimentation for a watch that would be similar to a smartphone.

This isn’t the first time Microsoft Corporation (NASDAQ:MSFT) attempted to compete with their Cupertino-based rival. Their new tablet computer called Surface was designed specifically to compete with the Apple Inc. (NASDAQ:AAPL) iPad, even though it has a long way to go to ever become a legitimate competitor if it ever does.

First it was smartphones, then it was tablet computers, and next it could be smart watches. Technology is changing fast and it doesn’t appear to show signs of slowing down anytime soon. Every tech company wants to be the first to introduce the product but it appears that only one company can truly revolutionize the entire industry. It’s no secret that Microsoft’s days are numbered but that hasn’t stopped them from trying to change things around.

As for a smart watch, the concept is a good idea, but there is no telling how it will hold up in a fickle market. Vincent Chen (analyst for Yuanta Securities) explains, “A smart watch can’t replace a smartphone even though the watch may be able to make calls. The small screen of a watch means the viewing experience won’t be good. It is especially hard for elderly people to read information on the watch. We need to see some really innovative applications to convince customers to buy an extra device in addition to a smartphone and a table.”

The smart watch is not a new concept. In 2012, Sony Corporation (NYSE:SNE) released a smart watch that was compatible with phones but it didn’t catch on as it had a too-small screen and it wasn’t Bluetooth compatible.

Only time will tell if Apple Inc. (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) can make a success out of smart watches.