The latest gadget rumor points to HTC, which is reportedly preparing for the debut of two new devices in March: a smartphone with a better camera and the company's very first smartwatch.

A person familiar with the situation said the phone, dubbed M9, will come with an HTC UltraPixel camera on the front and a 20-megapixel camera on the back, according to Bloomberg. The audio features in the new phone are also said to have improved over those of its predecessor, the M8, thanks to its eight-core Qualcomm Snapdragon 810 processor and Dolby 5.1 audio technology.

The Taiwanese company will also include its Sense 7 user interface in the phone to provide better location-based services.

There will still be some similarities between the M9 and M8, such as their size, design and color options, which include gold, gray and silver, The Verge reported.

The UltraPixel camera on HTC's new phone is said to allow users to take better low-light photos by using larger pixels.

The smartwatch, the source said, will work with fitness sports clothing and accessories developed by Under Armour, The Verge reported. The integration is part of a partnership HTC announced with Under Armour earlier this month at the Consumer Electronics Show in Las Vegas.

The source, which asked not to be identified because the details aren't public, said the release of the new gadgets is aimed at helping HTC improve its sales, which have seen a decline in the past three years, Bloomberg reported.

Smartphone and smartwatch enthusiasts will have to wait until the Mobile World Congress, which will take place in early March in Barcelona, for their chance to get a look at the HTC's new smartphone and smartwatch. Other companies preparing to release new products at the event include Samsung Electronics and Huawei Technologies.