The USD 199 "Re Camera" is slim and tube-shaped camera and can be clipped to a backpack, mounted on a bicycle or taken underwater, a US daily reported.
The camera weighs about 2.5 ounces, similar to that of an extra-large egg. HTC hopes the growing selfie trend tendency will help it engineer a turnaround.
Last year, HTC fell out of the world's top 10 smartphone brands amid branding weakness and strong competition from Samsung.
According to chief financial officer Chialin Chang, the new product will help it return to sales growth in coming quarters. HTC's sales have fallen for the past 12 quarters.