to 1.8 percent of the market last year, down from 2.4 percent in 2011, according to Gartner, and delivered disappointing first-quarter sales guidance early this month after reporting a 91 percent plunge in fourth-quarter net profit.
HTC launched its new device, which features a 4.7 inch screen and quad-core processor, days before the mobile phone industry's biggest gathering in Barcelona.
Analysts said that the new smartphone would help HTC to differentiate its brand from the typical Android offering but that competition from Samsung remained the biggest threat.
"HTC One is the best Android smartphone for the time being, but consumers will wait till they see Galaxy 4S, which is expected to launch in mid-March, to decide to buy or not," said Birdy Lu, an analyst at Daiwa Capital in Taipei.
HTC said the device would be available in more than 80 countries from March.
Shares of HTC closed down 1.6 percent on Wednesday in Taiwan, versus a 9 percent rise in the broader market