(Photo: REUTERS/Jason Reed)A visitor walks into an Apple store in Clarendon, near Washington, August 10, 2011.

An Apple Smart Watch continues to be the target of rumors, as new reports suggest that the tech. giant company is currently conducting tests on a watch-like device.

Rumors have suggested that Apple is designing a type of "Smart Watch" which will be able to perform many of the functions of a smartphone, such as the iPhone.

According to the New York Times, Apple is conducting experiments in a type of curved-glass device, which would have some kind of bendable display glass developed by US manufacturer Corning.

Sources behind the rumors have suggested that the device would likely use Apple's own iOS operating system, which Apple users will known well from the iPhone and iPad devices. The source to the New York Times, however, only spoke on the condition of anonymity.

The rumors suggest that the Smart Watch would incorporate some kind of mobile payment system using Apple's Passbook software, and that numerous functions more commonly associated with smartphones would also be implemented into the device.

Other rumors about the device have had some commentators suggest the Apple Smart Watch would be released with the name "iWatch," following in the footsteps of the company's iPhone, iMac and iPad.

According to reports in the Wall Street Journal, Apple is simply testing and discussing the Smart Watch with its manufacturing partner in Taiwan, Foxconn. The publication claims that the Smart Watch is part of the company's innovative drive to develop devices beyond its current computer, laptop, smartphone and tablet line of devices.

Rumors have been rife about a type of watch that can connect to networks for years, and is part of an emerging push to get the latest technology into commonly wearable devices. Analysts believe this is the next obvious step in the technology currently being used, as there is always a drive to make the latest technology more portable and easier to carry around as people conduct their every day lives.

Earlier this year at the Consumer Electronics Show 2013 a number of smart watches were displayed to visitors, although those devices featured Google's Android operating system rather than the Apple iOS.

Here is a video report of the Apple Smart Watch: