Intel flashes an image of a new Basis smartwatch before event

Intel is dropping big hints that it will show a new version of its Basis Band smartwatch on Tuesday, the same day Apple may unveil its long-awaited iWatch.

Intel sent invitations out to some journalists promising the “first hint of what’s to come with Basis (an Intel company) as we introduce the ultimate fitness and sleep tracker this fall.

The world’s biggest chipmaker is moving into wearable gadgets. And instead of making just the components, it plans to create the entire devices and work with brand owners to sell them. That’s why it purchased Silicon Valley startup Basis Science earlier this year for an estimated $100 million. That puts Intel in direction competition with some customers, or potential customers, for its chips such as Apple.

Intel hasn’t announced anything formally yet, but it did announced on Friday that it would collaborate with Fossil Group, the designer of fashion accessories such as watches.

“We are very excited about collaborating with Intel and working to develop the next innovation in the emerging wearable technology space,” Kosta Kartsotis, Chief Executive Officer of Fossil Group, said in a statement Friday. “Combining our fashion lifestyle brands with Intel’s expertise in technology, hardware, and innovation will position us to be a leader in this segment.”

And earlier this year at the Consumer Electronics Show, Intel said that its New Devices Group, headed by product designer Steven Holmes, would create wearables, fashion, jewelry, and other smart devices in collaboration with fashion designers Opening Ceremony and Barneys New York.

That suggests that Intel has a lot of activity around smartwatches beyond what it is doing with Basis.

The Basis Band has been out for a while. The first version has had some problems, but it sells at $200 and it is different from the pack. The device is packed with sensors such as an accelerometer, gyroscope, temperature sensor, and sweat monitor. It also has an LED light that shines into your skin to monitor your blood flow. From that, it infers your heart rate. Those sensors allow it to monitor your physical activity, like how many steps you have taken. Beyond that, it can tell if you are running, walking, or cycling. It can thus come up with a better estimate, delivered through the cloud, of how many calories you are burning.

I like it also because it tells you how many hours and minutes you sleep in a day, using the heart rate information. That data is also aggregated in the cloud for you to examine. Basis uses that data to suggest health tips that are personalized for you.

We’ll see what Apple announces on Tuesday, but many expect it to talk about its own rival band, which has been dubbed iWatch by the press. The image above shows that Intel is learning a thing or two about fashion design, as the band looks more interesting than the black and white bands that Basis has launched previously.