What I read was, Google to take on

Watch.
Google has commenced a programme of taking on Apple's new watch. Google is bringing together partners in watchmaking and electronics to accelerate the development.
This Google strategy was used successfully previously when it took on the iPhone, pulling in handset manufacturers and finally making a good go of competing with it's Samsung alliance.
For it's challenge to the Apple Watch Google has pulled in Intel for the electronics and TAG Heuer for the watch and hope to emulate their Android successes. Google are yet to announce the other dozen or so watch makers they are partnering with.
Google's resources combined with an established watchmaker and established electronics company should in a few years yield some exciting results.