HTC has warned it may make an operating loss in the third quarter, sending its shares down sharply.
The Taiwanese mobile phone maker's shares fell seven percent to 159.5 Taiwanese dollars, a near eight-year low.
According to the BBC, It said its margins were hurt by relatively higher cost structure and the lack of economy of scale.
It said it expects its operating margin in the third quarter to fall to between zero and minus eight percent on revenues of between 1.7 billion dollars and 2 billion dollars, the report said.
HTC, once a major global player, has seen its profits fall in recent times as it lost market share to rivals such as Samsung and Apple, it added.
It net profit dipped 83 percent in the second quarter, from a year earlier.
