This isn't the first time the company has debuted its own operating system. Back in 2010, HTC released the HTC Smart, a low-budget smartphone with an interface designed to chameleon to the consumer's specific use case. It borrowed some of the aesthetics from it's own Sense UI overlay for Android and was released specifically to European and Asian markets, but it didn't gain much traction.
As we saw with the HTC First, it takes more than just an interface to create a success story, and building an operating system entirely from scratch is a taxing task. It would be unfortunate if HTC uses the remainder of its dwindling funds for a project that could flop.
UPDATE 5:30pm PDT: An HTC spokesperson sent the following clarification to TechHive.
"HTC can confirm that it is not driving the development of a new Chinese OS, however as a company it is important for us to invest time with the Chinese government, our operator partners and consumers to better understand their needs in the smartphone space. This covers a wide range of topics including the development of new technologies."
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