According to a recent report from Bloomberg, HTC is said to develop a smartwatch that is expected to use Android. While further details like cost and price, functions and sales strategy are yet completely unknown, the person familiar with the matter told Bloomberg that HTC's smartwatch will be able to "take photos". Therefore it can be everything between a feature limited Samsung Galaxy Gear and an Omate TrueSmart, which both are also running on Android, unlike the Pebble. The release is expected for the second half of 2014. As expected, HTC denied to comment and said in an E-Mail to Bloomberg that it "doesn't comment on rumors or speculation".
In my humble opinion, a smartwatch from HTC would make a lot of sense, especially if we keep in mind, that HTC has a love for fancy accessories as the 2013 lineup of HTC One accessories shows. A smartwatch, which might be "the next big thing" would fit perfectly into this lineup; especially after HTC's main competitors Samsung and Sony (Ericsson) have joined the bandwagon early and Apple is also expected to work on one.
Cheers ~ Arne