HTC has revealed Q3 2012 financial results, and unfortunately, things are not looking so good for HTC. Both revenue and profit are down by around 50%. In all, HTC made NT$70.2bn ($2.4bn), which is a drop of 48-percent from Q3 2011 and 23-percent from Q2 2012. Operating profit was NT$4.9bn ($167m). This is a decrease of a staggering 76-percent year-on-year.

HTC seemed to expect these numbers. They said that the low sales were in keeping with its expectations. Still, even if HTC expected the results, that does not necessarily soften the blow, and HTC certainly needs to make some changes to get those numbers up going forward if they want to remain a serious player in the increasingly competitive market.

HTC managed to cut costs in Q3, which helps in the short term, but in the long run, it means R&D spending is down, which could have negative results going forward. Overall, operating expenses were down 29-percent year-on-year. They spent NT$12.6bn ($431m), with the greatest cuts coming from sales marketing.

Things are not quite as dire as they were in Q1 of this year, but it’s still not good. Things are only expected to get worse for Q4, with HTC predicting a 1-percent operating margin and revenues of around NT$60bn ($2.1bn). Hopefully, 2013 will be a better year for HTC. Perhaps the launch of the J Butterfly in Japan, and the eventual launch of a 5-inch+ phone in the US will help them turn things around.

[via SlashGear]