HTC staring down the barrel of Q3 loss

Seriously?

I thought the dire HTC stuff from the Verge was butthurt over the Vlad/Chou interview.I thought their problems were due to lack of game changers between the One X to One. But apparently releasing their best device ever can't even stop the bleeding. Is the management this horrible? How bad is the screwing they get from component suppliers? Was the First flop that detrimental? I can't understand how you can have such a popular device, all you do is sell handsets, and you take a massive haircut after it's release. I don't understand how a major clean sweep of all management isn't imminent.

“Our overall gross margin has been impacted by the relatively higher cost structure, lack of economy of scale and certain provisions needed to facilitate the clearance of aging products in the channel. Actions have been taken and we expect to see improvement in Q4,” HTC said in its guidance. “We are also optimizing our organization, including the improvement of management efficiency and effectiveness.”