HTC is set to release its first wearable device before the end of 2014, joining the ranks of smartphone makers moving into the new category.

According to Bloomberg, Cher Wang, chairman of the company, said: “Many years ago we started looking at smart watches and wearables, but we believe that we really have to solve the battery problems and the LCD light problems. These are customer-centric problems.”

The launch will come at the end of what is a critical year for the troubled device maker, which has seen a run of revenue drops and profit declines (including its first loss-making quarter).

HTC is expected to launch a new flagship device in the not too distant future, with Chang Chialin, its CFO and head of sales, also acknowledging its mass-market proposition has lost its edge.

“We have to admit we took our eyes somewhat off the ball in making sure we have a robust portfolio in the mid- and affordable end, which we’re fixing now,” the executive said.