Sales for Taiwan-based smartphone brand HTC have dropped sharply, causing a corresponding drop in its share price.

HTC reported sales for September were down 80.71 percent from a year earlier and 9.58 percent lower than in August. As a result HTC shares plunged 6.77 percent.

Analysts said the figures reflect the fact that HTC is facing escalating competition in the global smartphone market and its operations are unlikely to make a turnaround anytime soon.

HTC is also facing a patent lawsuit brought by US Motiva Patents for alleged infringement of five patents.