According to the latest rumors, HTC has back-tracked on their plan to produce an Android Wear smartwatch. Supposedly, the reason they have scrapped the project was due to high production costs, at a time when they are already struggling.
On top of this, the company's executives were concerned that their smartwatch design didn't offer anything unique or innovative compared to the competition and wouldn't be well-received. HTC basically felt they wouldn't be able to compete effectively in the market at this time so they pulled the plug.
If true, this is probably a wise decision for the company. Perhaps they should continue to focus on improving their prospects with their smartphones before competing in an unproven market.
Source: PhoneArena
