Phone manufacturer HTC has suffered a 7% drop in share price following an unfavorable revenue forecast.
The company had predicted a 20-30% growth for the final three months of the year. It now predicts growth will be stagnant.
According to HTC, who are the world's fourth-biggest smartphone brand, the decline in revenue is due to an increase in competition, with the smartphone market witnessing a raft of new launches throughout 2011, including Samsung's Galaxy Nexus, the iPhone 4S and the Motorola RAZR.
Despite announcing new versions of the HTC Sensation (Sensation XE and XL), the Taiwanese-based company has struggled to find a serious competitor to Apple’s all-conquering smartphone, particularly in the US, which accounts for half of HTC's sales.
The company is expected to release new products next year, though some analysts predict that it may be too late to stop HTC's main competitors, Apple and Samsung, from pulling away.