HTC is experiencing tough times, despite the success of its HTC One range of smartphones. As mobilenapps.com recently covered, HTC has abandoned areas where there is marginal growth - including Brazil - as the company struggles. HTC's CFO recently said that "innovative products" are needed to maintain the relevance of the brand. That innovation may begin with a Samsung Galaxy Note/2 rival.

According to "industry sources" speaking to DigiTimes, HTC will launch the 5-inch smartphone between September and October 2012. Whether the device is "innovative" remains to be seen, but if rumors are accurate, it could feature cutting-edge hardware. Benchmarks from earlier in 2012 revealed a Snapdragon S4 processor and screen resolution of 1724 x 1080. The Adreno 320GPU is apparently included. The new smartphone could run on Android 4.0.4 Ice Cream Sandwich.

Verizon is expected to stock the device. However, given HTC's positive track record with AT&T and Sprint, the new smartphone is unlikely to be Verizon-exclusive.

The Samsung Galaxy Note 2 launches in August. Some observers have suggested that Samsung hopes to take the spotlight away from Apple, which may be launching the iPhone 5 in late September. The Galaxy Note 2 is a 5.5-inch "phablet" - a hybrid of phone and tablet form factors. Google's Galaxy Nexus 7 tablet is just 1.5 inches bigger than the Galaxy Note 2 at 7 inches.

DigiTimes' sources added that the popularity of the Note attracted "a number of vendors" across Korea and China to the "phablet" form factor, including LG, which launched the 5-inch Optimus Vu in May.

HTC's launch events usually take place within the second half of the year, so a pre-iPhone launch for the new smartphone is possible. This fall could be a very busy time for consumers.