
HTC is looking to slash cost by a quarter and sell low-cost devices in efforts to return to profit for its fourth quarter.
The Taiwanese smartphone maker warned that revenue for the Q4 would drop up to 15% amid mounting pressure from rivals Apple and Samsung.
Despite generating revenue of $1.9bn (£1.18bn), HTC reported a loss of $101m during the third quarter of 2013.
However, CEO Peter Chou said that the company had delivered good progress in the third quarter after introducing the HTC One Mini and One Max.
"We have also launched the Here’s To Change global brand campaign, affirming our role as the change-maker challenging the status quo since the dawn of the mobile phone industry, as well as our mission of continuing to bring change into the hands of people around the world," Chou said.
For the next quarter, the company is looking to generate revenue between $1.3bn and $1.5bn, while gross profit expected to be 20% +/-1%.
HTC recently closed one of its four main smartphone manufacturing lines that account for about one fifth of the overall capacity and has also started outsourcing the production of its devices.