Google gears up for smartwatch war

Google's smartwatch expected

Google is gearing up to produce a smartwatch, and that could mean trouble for Samsung and smaller makers of the devices.

The watch is in late-stage development and just months away from production, according to one report.

The device would give Google the opportunity to add value to the smartwatch market, which has been focused on extending smartphones' functionality rather than replacing smartphones, according to experts.

Google's smartwatch is expected to integrate Google Now, a function similar to Apple's virtual assistant, Siri.

By CNBC's Althea Chang