HTC Corp is in the process of developing a smartwatch which uses Google's Android software. The said technology would be able to take pictures, according to a person with intimate knowledge of the matter.

The cost, functionalities and sales program for the technology are still to be set before the release scheduled by the second half of 2014. This was confirmed by a source who sought anonymity as the plans have not yet been made public. 

For its part, Chairwoman Cher Wang had gathered employees in a town hall style meeting to inform everyone that the smartphone maker would need to improve its customer focus. These remarks were confirmed by Chief Marketing Officer Ben Ho during an interview.

The declining market share for HTC had resulted in the company's first loss with a 54% slump in its share value this year as it lost ground to Samsung Electronics, the acknowledged market leader. With the smartwatch, the company would join a growing segment of wearable technology from other market players such as Samsung and Sony Corp.