Taiwanese smartphone manufacturer HTC predicts a loss as it released preliminary results for the fiscal second quarter of 2015. The Company's campaign in the mid-tier smartphones competition is considered to be a major factor in their financial distress.

According to TechCrunch, HTC is expecting an operating loss of NT$5.14 billion, or about $166 million dollars on unaudited revenues of NT$33.01 billion ($1.07 billion) for the quarter ending June 30.

In addition, tech website Android Headlines reports that HTC's stock has plunged to its lowest at $2.99 a share, lower than the company's book value.  

This downturn in company profits follows another one posted in October of last year. HTC has managed to lodge slim profits, including for the year ended 2014, but has posted smaller profits for each quarter before this projected loss.

The fierce competition in the mid-tier device category may have been a factor in HTC's financial problems, reports the article from TechCrunch. HTC's decision to focus on mid-market smartphone offerings have been complicated by pressure from both big players like Samsung as well as smaller ones such as Xiaomi has put a significant dent into HTC's sales; adding to that is the rather lukewarm reception to the HTC One M9, despite the company producing some of the most well-received Android devices in the market.

HTC's financial struggles have triggered speculations about a possible buyout by tech rivals, specifically a takeover from fellow Taiwan electronics manufacturer Asus, which was prompted by statements from Asus' chairman Jonney Shih. While HTC has quashed the rumors and Asus itself has clarified that there has been no formal bids for HTC, the company's dwindling profits may hint at another future for the struggling technology company.

HTC has also seen a change in top-level management this year, with former CEO Peter Chou being replaced with current chairperson Cher Wang, who has indicated that she wants to take on a role that is more related to product development.