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Top 10 wearable products at MWC 2014

Google, whose projects range from self-driving cars to robots, likely sees smartwatches as part of the future evolution of computing, said Raymond James analyst Aaron Kessler. But he said it remained to be seen whether smartwatches will become an indispensable digital accessory or a "nice-to-have" gadget.

"At this point I would still view it as a niche product," he said.

Among the more than 10 companies that are partnering with Google on Android watches are Samsung Electronics Co , HTC Corp, Asustek Computer Inc, Intel Corp, Qualcomm Inc, Broadcom Corp tek Inc.

Qualcomm and its manufacturing customers are working on "multiple" wearable devices based on its Snapdragon processors, spokesman Jon Carvill said. He declined to elaborate.

"We've barely scratched the surface of what's possible with mobile technology," Google said in a post on its official blog on Tuesday. "That's why we're so excited about wearables - they understand the context of the world around you, and you can interact with them simply and efficiently, with just a glance or a spoken word."

Shares of Google closed 1.6 percent higher at $1,211.22 on Tuesday. Shares of Fossil Group rose 4.6 percent to $118.04.

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