HTC Corp. has reported a loss for the first quarter of 2014, missing analysts’ estimates. Samsung and Apple need not worry about a company that was at one time a serious adversary In HTC Corp.’s unaudited earnings for the first quarter of 2014 (1QFY14), it has missed analysts’ estimates as it recorded its second loss in three quarters. The smartphone maker generated $1.1 billion in revenues, and posted NT$1.88 billion ($62 million) in losses. On average, analysts were expecting $1.18 billion in revenues, and losses of NT$1.7 billion. The company's revenues fell 22% year-over-year, and it posted quarterly losses whereas it had posted a profit in the same quarter last year. The Taiwanese company also posted net losses of $102 million in the third quarter of 2013, and then showed profitablity in the fourth quarter owing to the proceeds from the sale of its stake in Beats Audio. This year has started with losses and declining sales, but HTC expects quarter-over-quarter revenue growth in the second quarter. Smartphone Industry Dynamics HTC has lost a lot of ground in the smartphone market to giants Apple Inc. (AAPL) and Samsung Electronics (SSNLF). The company had a market share of nearly 9.3% back in 2011, but as of last year, this had dropped to 2.8%. Both Apple and Samsung continue to spend huge amounts on marketing, whereas HTC's budget continues to shrink. In 2013, Samsung spent $363 million on marketing in the US, Apple spent $350.9 million, and HTC spent only $75.8 million. The tussle between both smartphone giants had intensified so much at one stage that Apple had even contemplated firing its advertising agency, TBWAMedia Arts Lab. According to documents released at a court hearing of the ongoing patent lawsuit between the two, Apple's marketing chief Phil Schiller had apparently sent a note to account lead James Vincent at Media Labs that they "have a lot of work to do to turn this around."