HTC's net profit rose 68 percent in Q3

HTC released its unaudited Q3 earnings results today, revealing that the company's net profit had risen 68 percent from last year, reaching NT$18.64 billion or about US$615.3 milion. Despite a 34 percent drop in stock value since July 1, the company's total revenue has grown by 79 percent to NT$135.8 billion or about US$4.4 billion.

The 34 percent drop in HTC's shares were due to concerns over the growing competition in the smartphone market while the company faced increasing litigation from Apple over patent issues. Although the Q3 earnings are consistent with expectations, there still remains concern over the performance of HTC's new products, including the HTC Rhyme and HTC Sensation, which will determine its Q4 results.

Additionally, HTC has seen a decrease in margins, suggesting that the company is increasing expenses on its new products. The company announced a $300 million exclusive partnership with Beats Audio that would bring the brand and its technology to future HTC handsets, including the rumored HTC Vigor and the HTC Runnymede/Bass.

[via WSJ]