It looks like the cat is out of the bag. HTC has announced a strategic partnership with Beats Electronics which is most likely going to be the main topic of Peter Chou’s announcement on Thursday morning. While the official press release doesn’t give many details about the partnership between the two companies, rumor has it that HTC has invested $500 million dollars to purchase a 51% controlling interest in Beats Electronics. Beats has risen to the top and become one of the leading names in high performance audio and has become a style symbol for those in the music world. Beats Electronics was created by Dr Dre but the company is also co-owned by Jimmy Iovine the chairman of Interscope Records and Universal Music Group.
HTC will let Beats Electronics continue business as usual. While this is great news for Beats fans, we’re wondering what this really means for HTC. HTC plans to include Beats audio in their upcoming phones. With the first Beats handsets set to launch this fall, this could mean the inclusion of some Beats headphones with your next HTC phone purchase.
We’re not sure how this will pan out for HTC in the long run, but it’s nice to see HTC spreading its wings and offering its users a more complete handset experience. Do you think HTC’s investment in Beats Electronics will give them a competitive advantage over other handset manufacturers?Show Press Release
Strategic HTC investment to result in Beats-integrated HTC phones this fall
“The HTC and Beats by Dr. Dre partnership is an opportunity for two world-class companies to redefine the smartphone industry and define the future,” said Jimmy Iovine, chairman of Beats by Dr. Dre and chairman and CEO of Interscope Geffen A&M Records, which is a division of Universal Music Group and a stakeholder in Beats. “For Beats by Dr. Dre, this represents a critical step in our continued mission to clean up the destruction of audio caused by the digital revolution and reengineer how sound is delivered, so the consumer feels the music the way that the artist intended.”
HTC and Beats have been working together to create superior mobile audio experiences for consumers, which will result in a line of HTC devices integrated with Beats sound innovations, available this fall.
“Beats has found a unique way to harness popular culture in a manner that is unlike any other brand today,” said Peter Chou, CEO of HTC Corp. “It’s an exciting brand that has been built around providing something very special, and we believe our strategic partnership will provide customers with unbeatable sound on HTC phones. We obsess over every detail of a consumer’s mobile experience, and audio is a critical part of that experience.”
HTC is known for unifying content, services and devices into unique mobile experiences. And Beats is known for its unique consumer brand appeal and ability to reproduce the full spectrum of sound captured in professional recording studios, allowing consumers to hear music the way the artist intended. Bringing these two great brands together will create superior mobile music and sound experiences while accelerating HTC’s entry into the youth and accessories markets globally.
Beats Electronics will continue to operate autonomously – with Iovine as chairman and Luke Wood as president and chief operating officer – with its current business partnerships, including Monster Cable Products Inc., HP and Chrysler Group LLC. Iovine also will continue serving as chairman of Interscope Geffen A&M Records.
“Our customers have clearly responded to Beats and HTC, and Best Buy is proud to feature their products in our stores,” saidBrian J. Dunn, CEO, Best Buy. “We are committed to offering innovative and entertaining technologies that help consumers enhance their lives. Our customers expect that from us. The unique HTC Sense experience and the great sound of Beats provide prime examples of that focus.”
About Beats Electronics LLC.
Established in 2006, Beats Electronics is the brainchild of legendary artist and producer Dr. Dre and chairman of Interscope Geffen A&M Records Jimmy Iovine, who set out to develop a new type of headphone with the capability to reproduce the full spectrum of sound that musical artists and producers hear in professional recording studios. For more information, please visit http://beatsbydre.com.
HTC Corp. (HTC) is one of the fastest-growing companies in the mobile phone industry. By putting people at the center of everything it does, HTC creates innovative devices that better serve the lives and needs of individuals. The company is listed on the Taiwan Stock Exchange under ticker 2498. For more information about HTC, please visit www.htc.com.