The Taiwanese phone maker HTC Corporation said in its earnings report issued on 6 August that the company had recorded an operating loss of NT$5.1 billion ($161 million) and NT$8 billion ($253 million) in net loss before tax, while revenue dropped to NT$33 billion, down 49.3 percent from last year.
HTC attributed the poor performance to weak demand in the high-end market, as well as in China. According to Tencent.com, the company will forgo some smartphone models in an effort to save costs and remain competitive against Apple and Samsung.
Meanwhile, the company will be cutting a considerable amount of jobs across all departments until the first quarter of next year, according to chief financial officer and president of global sales Chialin Chang. Chang said that HTC has already implemented "company-wide efficiency measures to reduce operating costs".
Over recent years, HTC's market share has consistently dropped as it is squeezed at both ends by high-end competitors such as Apple and Samsung, as well as its growing Chinese counterparts.
In response, the company said it is now looking to boost sales of more expensive models in emerging markets, as Chang noted that, in India, HTC accounts for 20 percent of the smartphones, which are priced between US$250 and US$400.
However, industry analysts are not particularly optimistic about how HTC, and some expect the company would continue to struggle for the next four quarters.
"We think HTC's market share will keep dropping and it will keep recording losses," said Calvin Huang, an analyst from a security firm in Taiwan.
The share price of HTC Corporation has plunged by 51 percent since the start of 2015 on the Taiwan Exchange.