HtC has announced and unexpected drop in performance for the summer quarter. Profits as compare to a year ago fell more almost 18 percent to the tune of $179 million. To top off the poor performance total revenue also fell more than 10 percent.

Although there has been no official explanation given as to why the performance fell off, many "experts" believe that because of stiff competition, HTC had to increase advertising and lower prices.  [source]