HTC has reduced its expected sales number for Q2 2015. The company had expected to pull in between $1.48 billion and $1.64 billion during that period and now it has revised its estimate to between $1.07 billion and $1.17 billion. HTC is blaming a general decrease in demand for Android phones and a drop in sales in China.

Operating costs are also rising and negatively affecting HTC. Those costs are connected to "increased competition" that has forced HTC to spend more on "product promotion." The company has previously said it would increase promotion and reduce production costs.

HTC does not intend to leave the smartphone market but it is having to readjust the way it approaches phones given the drop in sales.