Smartphone maker HTC on Friday slashed its revenue projection for the second quarter as sales of its high-end Android phones have suffered a severe decline. 

According to the company, HTC will see a net loss of about $256 million in the second quarter, and the company said that it now expects sales for the upcoming quarter to be between $1.06 billion and $1.6 billion, roughly half what the company reported in the same quarter last year. 

In a statement, HTC said that increased competition has raised operating costs for product promotion, and the company is working on cost-saving measures to improve operating efficiency.
 
HTC’s flagship One M9 has received generally positive reviews, however the company is now going up against a pair of new Galaxy smartphones from Samsung–the S6 and S6 edge–as well as Apple’s iPhone 6 and iPhone 6 Plus. 

According to comScore, HTC controlled 3.8 percent of the U.S. smartphone market by vendor at the end of the first quarter. That was down from 4.1 percent in the same quarter last year. Apple currently takes home about 41 percent of the total smartphone market in the United States, while Samsung has captured 29.3 percent.  

Shares of HTC were down just under 2 percent to $92.80 in early trading.