DigiTimes, which cites internal Microsoft data, claims that HTC has declined from the previous #1 Windows Mobile non-touchscreen smartphone maker spot with over 50% of the market (from July '06 to June '07) to just under 30% of the market. Stepping up to take over HTC's spot are Motorola and Samsung, whose respective Q and BlackJack models are apparently more popular than previously thought. The same report says that HTC is still #1 in terms of the smartphones with touchscreens, with about a 50% share. Honestly, the touchscreen models are where HTC's focusing most of their efforts anyway, so this isn't that huge of a deal. [Digitimes]
It's because they stopped innovating (like WordPerfect did in the mid 90s). The Verizon VX6600 was their last innovative phone and its almost 4 years old. Since then, all they've done is make their screens smaller (a negative in my book), and occasionally rip off someone else's idea (e.g. HTC Touch). Sure the Tilt is cute and the Wing is a little faster, but that's not innovation.
The IPhone was innovative. With some software updates, the the 6600 can do basically everything the IPhone can (you can download IClone apps to see for yourself). And its 4 years old. That's innovative.
They need to get past their 320x240 resolution (what the hell is up with this?), get some haptic multi-touch screens and put in dual cameras. That will at least catch them up to Toshiba.
Put in some dual sliders and they might even match the Helio.
Thin it down to the Blackjack level and add at least one kick-ass feature (Android?) and they're back on top of the heap.