HTC, which formerly held a strong share in smartphone sales worldwide, is blaming the forecast loss on poor sales in mainland China and a lack of demand for high end Android phones.
Many market analysts have predicted that the market for high end smartphones is practically saturated but former competitors like Samsung and Apple still continue to do well.
Sales of HTC phones in May fell by something like 20 percent compared to the previous month and as much as 49 percent compared to the same month in 2014.
HTC’s gross margins are also shrinking, aggravating the slide.
Many outsiders believe that HTC lacks the financial muscle of an Apple or a Samsung and can’t afford the high price that marketing smartphones appears to demand.