HTC has reported consolidated revenues of NT$10.61 billion (US$353 million) for July, dropping 51.61% from a month earlier and 32.58% from a year earlier. Revenues for the January-July period totaled NT$108.79 billion, down 15.8% on year.

The over 50% revenue drop in July will make it difficult for HTC to reach its third-quarter guidance, market sources said, according to DigiTimes.

HTC said recently that it expects its sales to decline 27.8-35.0% sequentially to NT$42-47 billion in the third quarter.

Shipments of HTC's high-end model, the HTC One (M8), have reached its peak and were also affected by slow sales of high-end models in the U.S. and Europe, DigiTimes quoted the sources as saying.

Although HTC's Desire-series smartphones are enjoying strong sales in China, keen price competition in the market has eroded its sales value, the sources added.

HTC plans to launch its next-generation Butterfly 2 at the end of August and probably a new Desire model with high price-performance ratio in September in order to shore up its third-quarter sales, the sources said.