HTC's smartphone shipments may drop 25-30% sequentially in the third quarter of 2014 as sales momentum for its flagship New One (M8) has not been as strong as expected, a report has cited sources with the vendor's supply chain as estimating.

The Taiwan-based smartphone vendor's shipments are likely to only reach 4.5-5 million units in the third quarter, with revenues for the period falling under NT$50 billion (US$1.66 billion), the China Times newspaper reported.