TAG Heuer is teaming up with Google and Intel to develop a smartwatch that will run on Google's Android OS and will be powered by an Intel chip. 

The announcement was made Thursday at the Baselworld International watch exhibition in Switzerland.

"We can't produce the engine, the chips, the applications, the hardware -- nobody can produce it in Switzerland," said TAG Heuer CEO Jean-Claude Biver.

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"The hardware and the software will come from Silicon Valley. But the watch case, the dial, the design, the idea, the crown, that part of the watch will, of course, be Swiss." Biver added.

Just like other smartwatches, the TAG smartwatch will come with fitness tracking features like GPS and heart rate monitoring. The pricing hasn't been made available, but the Tag Heuer smartwatch is expected to hit stores before the end of the year.

Makers of smartwatches like Samsung, LG and Asus provide tough competition for traditional watchmakers such as Swatch and Fossil, which make timepieces for brands like Michael Kors and Armani.

TAG's move was part of a unified effort from these watchmakers to create fashionable watches that are more appealing to consumers than those created by tech companies.

Observers say what most consumers don't like is that these smartwatches, when worn, look more like a mini-computer than a piece of jewelry.

Biver admits they, too, are looking forward to the official launch and sale of the Apple Watch on April 24, saying the event will increase interest for the product.  The company said riding on that wave is good preparation leading up to TAG smartwatch's release by the end of the year.

"Apple will get young people used to wearing a watch and later maybe they will want to buy themselves a real watch," Biver said.

TagsTag Heuer, luxury watch, smartwatch, google android, Intel