HTC shares tanked 10 percent on Friday after the Taiwanese electronics company reported disappointing earnings in the face of fierce smartphone competition.
The handset maker reported a second quarter net loss after tax of 8 billion new taiwan dollars ($253 million) on revenues of 33 billion new taiwan dollars.
HTC blamed weaker-than-expected demand in the high-end smartphone market as well as weak sales in China. However, it also admitted that it needed to make trendier devices.
"They don't have the marketing muscle that their biggest competitor Samsung has and they don't have the ecosystem Apple has got," Roberta Cozza, mobile analyst at Gartner, told CNBC by phone.