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HTC is being locked out of the current generation of devices, so it’s going to focus on the next one.

In an effort to reverse its dimming prospects, HTC has created a new “emerging devices” division that will focus not only on “innovative new HTC products” but on global distribution strategies as well, according to an internal email obtained by The Wall Street Journal.

The new division, which will be led by HTC North America president Mike Woodward, couldn’t come at a more vital time for HTC. While its recent HTC One has been almost universally praised, HTC’s overall financial performance has still left much to be desired: HTC’s profit dropped 83 percent last quarter compared to a year ago, and its stock is at is lowest point since 2005. (The company is also coming off the tough loss of a number of key executives.)

Alongside the creation of the new division, HTC CEO Peter Chou also appointed HTC president of global sales Jason Mackenzie to president of HTC North America.

“With the success of the One, we have many new opportunities both to expand current sales as well as to enter new distribution channels with new business models,” Chou said in the email.

For Chou the imperative here is clear: Make innovation core to HTC’s future — before it no longer has one.

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