A report published on Friday, suggests that the rising costs of producing the watch was one of the reasons behind HTC's decision to cancel it. In addition, it is believed that the watch being devised by the company lacked any innovation or special design that would allow it to challenge the competition.
The smartwatch market is becoming more and more crowded, with Asus recently joining the group. Right now, there is a heavy air of anticipation as Apple's long awaited iWatch is expected to be unveiled on September 9th. As usual with Apple, the expectations are extremely high. While it is probable that Apple's timepiece will see the light of day this coming Tuesday, the product will probably not be made available to consumers until next year.
It is in this environment that HTC felt that it could not produce a smartwatch that could challenge those models already available, or about to be unveiled. There is always the possibility that HTC will change its mind, and dust off its old plans some time in the future.