Microsoft is looking at entering the young wearable technology market with plans to launch their own smartwatch this summer.

The smartwatch will be able to monitor the user's heart rate, and will be compatible with iPhones, Android phones and Windows phones. 

The smartwatch, as a product that works across the three major platforms, is another bold move by Microsoft CEO Satya Nadella. The first Microsoft products that he unveiled in April were of a collection of Microsoft Office programs that worked on Apple's iPad, which was a first for the company.

"Microsoft needs to run across Apple and Android platforms," said Rick Sherlund, a Nomura analyst, in a research note that collected information on how major players in the industry think Nadella can "fix" Microsoft.

Rumors on Microsoft's smartwatch have been present since a patent application by the company that dates back to October 2012.  

For the heart rate monitor of the proposed smartwatch, Microsoft will use the company's expertise in optical engineering through the Kinect division of its Xbox gaming console. Optical engineers, data scientists and designers have developed a software platform specifically for the smartwatch which will be able to correlate the collected data by the sensors of the device, for increased accuracy on its readings.

Early details on Microsoft's smartwatch show that it may be more advanced than other fitness trackers currently in the market. Whereas the heart rate monitors of other smartwatches need to be turned on, that of Microsoft's smartwatch will continue to do so throughout the whole day. 

Microsoft's smartwatch will have similar looks as the Gear Fit, and will have a two-day battery life similar to it. However, its full-color touchscreen will be unusually placed inside the wrist of the user. The placement of the screen is intended to make viewing of data much easier and at the same time with more privacy.

As Microsoft enters the wearable technology business, executives and shareholders hope that the company will be able to replicate the success of the Xbox and Kinect with this release of hardware, and not struggle such as Microsoft's Zune music player and Surface tablet computer.

The reports on Microsoft's planned smartwatch launched comes right after rival Samsung announced the Simband, a health tracking wristband, and its accompanying software platform SAMI. The Simband and SAMI are part of Samsung's digital health initiative.