Shares of smartphone maker, HTC, have fallen 7% on the Taiwan Stock Exchange after the company lowered its sales and profit forecast for the second quarter.
HTC now expects revenue to be 13% lower than its initial projection.
It also cut its projection for operating profit margin to 9% from 11%.
HTC has experienced slowing demand from Europe, while a patent dispute has resulted in a delay in the launch of its new models in the United States.
Analysts say it has also been hurt by the growing competition in the sector.