HTC has said it now expects a loss in revenue this year after predicting a 10 per cent climb earlier in the year.
The reason is apparently down to delays in product launches, lower than expected contract orders and lower sales in China that previously thought.
HTC confirmed it will likely post single digit percentage loss in revenue in 2009, where it previously believed 10 per cent gains were possible.
With the HTC Hero making the fourth high profile launch for the company this year, there was some speculation the latest handset was rushed out to emerge before Samsung's first Android effort, the i7500 Galaxy.
Reigning in the rumours
The company may have had to delay other phones seen rumoured (such as the Lancaster) and has had to deal with launches of similar models in a number of territories.
Analysts are also predicting the cost per handset has been decreased due to the imminent Android competition from Motorola and Sony Ericsson, with both rumoured to be entering the Google OS arena soon.
HTC has been a real success story in the past year, bringing us the world's first three Android handsets before any other manufacturer has managed one, as well as being a dominant force in the Windows Mobile / Windows Phone arena.
It's likely that when Windows Mobile 6.5 emerges HTC will reap the benefits again, as Microsoft makes all phones running the OS a lot more finger friendly.
Sign up for Black Friday email alerts!
Get the hottest deals available in your inbox plus news, reviews, opinion, analysis and more from the TechRadar team.
Gareth has been part of the consumer technology world in a career spanning three decades. He started life as a staff writer on the fledgling TechRadar, and has grown with the site (primarily as phones, tablets and wearables editor) until becoming Global Editor in Chief in 2018. Gareth has written over 4,000 articles for TechRadar, has contributed expert insight to a number of other publications, chaired panels on zeitgeist technologies, presented at the Gadget Show Live as well as representing the brand on TV and radio for multiple channels including Sky, BBC, ITV and Al-Jazeera. Passionate about fitness, he can bore anyone rigid about stress management, sleep tracking, heart rate variance as well as bemoaning something about the latest iPhone, Galaxy or OLED TV.