Microsoft (NASDAQ:MSFT) is reportedly looking to jump head first into smart watches, according to Forbes. The rumored device could launch as soon as this summer, and will likely sync with Apple (NASDAQ:AAPL) iOS, Google (NASDAQ:GOOG)(NASDAQ:GOOGL), and Windows Phone. Additionally, Microsoft may leverage what it has learned through Kinect for advanced health monitoring features.

While Microsoft was late to the mobile party, that may not be the case for wearables. Wearables is still a new enough trend that Microsoft can hop on the bandwagon. However, there will be obvious ties to smartphones, in which case Microsoft has little choice but to embrace rival platforms in order to expand its addressable market.

New CEO Satya Nadella seems keenly aware of the changing times, and is ready to adapt. This smartwatch has likely been development for some time, if the summer timeframe turns out accurate. The same can be said for Office for iPad, which was Nadella's first major product launch as CEO.

In this segment of Tech Teardown, Erin Kennedy discusses Microsoft's potential smartwatch with Evan Niu, CFA, our tech and telecom bureau chief.

Erin Kennedy owns shares of Apple. Evan Niu, CFA owns shares of Apple. Evan Niu, CFA has the following options: long January 2015 $460 calls on Apple and short January 2015 $480 calls on Apple. The Motley Fool recommends Apple, Google (A shares), and Google (C shares). The Motley Fool owns shares of Apple, Google (A shares), Google (C shares), and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.