Aug 19 AT 1:44 PM Dima Aryeh 7 Comments

Beats allegedly wants to sever partnership with HTC

htc-one-x-beats

HTC has partnered with Beats for quite a while, slapping their logo onto HTC phones for years. HTC has integrated various levels of Beats software, whether it be a poor quality software equalizer that only works in the stock music app or a more refined (but still software) equalizer that can work for any audio source. HTC even purchased a 50.1 percent stake of the company for $300 million.

However, the Beats partnership has slowly been going downhill. Last year, Beats spent $150 million to buy back half of HTC’s stake in the company. And it seems that now Beats wants to sever the partnership altogether. The Wall Street Journal reports that “people familiar with the matter” say that Beats is looking for a new investor to replace HTC. This probably stems from HTC’s low profits and lack of big growth.

While HTC struggles, Beats has only been growing. Beats revenue was about $1 billion in 2012, up from $200 million in 2010. It looks like the people behind Beats may think they need a new investor who will support growth. While not confirmed, we’ll see where this partnership heads. Do you think HTC will suffer without Beats? Leave a comment!

Via: The Verge

Source: The Wall Street Journal

Dima Aryeh is a Russian obsessed with all things tech. He does photography, is an avid phone modder (who uses an AT&T Galaxy Note II), a heavy gamer (both PC and 360), and an aspiring home mechanic. He is also an avid fan of music, especially power metal.

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  • Graham Steffaniak

    No big loss, beats is merely an equalizer.

  • A.Woodbury

    Clearly HTC won’t necessarily suffer without Beats, HTC seems to be focusing on build quality than strictly its audio

  • romy134

    Agreed, now they will bring back the equalizer in new phones? meh it was nice but nothing an app wont fix

  • ickk

    god riddance, as a audiophile I couldn’t be caught dead with a phone branded with the beats logo. HTC is insane for investing in beats to begin with… now a beyerdynamic branded phone with a high end DAC delivering neutral sound signatures would be interesting.

  • Ryan

    The Beats logo played no role in selling HTC phones. Pairing the phones with a pair of Beats headphones however did help sales. That being said, I can’t really see how Beats benefited from this relationship. They’re better off on their own, or going to a company that’s more invested in the partnership.

  • iandblog

    Beats was never a factor when considering the HTC One.

  • donger

    HTC should of came out with that design studio. Have same color as beats headphones.