Not that this announcement came as much of a surprise to anyone that followed the news cycle last night, but today HTC revealed that its "major news announcement" is a partnership with Beats Electronics. The deal will see HTC invest $300 million into Beats Electronics, giving HTC a 51 percent stake in the headphone company. "Beats is a very unique experience," said HTC CEO Peter Chou. "This is a great opportunity to take the mobile experience to the next step, and mobile phones are very powerful, so it makes it easier than ever to discover and enjoy great music." HTC will be the only manufacturer with Beats tech in phones, and we've been told to expect the first Beats-enabled HTC devices this fall.
Although this announcement may not have been exactly what some HTC fans were hoping for, the addition of Beats technology could be a good way for HTC to have its handsets stand out in the ever-growing sea of smartphones. Plus, what better way to appeal to Beats fans and get them to buy HTC products than by getting Jimmy Iovine and Dr. Dre to sign off on the smartphones? For those of you that may have missed it last night, the press release officially detailing the HTC/Beats deal is available below. What do you all make of this announcement? Are you excited about the upcoming Beats-enabled HTC handsets or could you care less?
Strategic HTC investment to result in Beats-integrated HTC phones this fall
TAOYUAN, Taiwan and SANTA MONICA, Calif., Aug. 10, 2011 /PRNewswire/ -- HTC Corp., a global designer of mobile devices, today announced a strategic partnership and investment with Beats™ Electronics LLC., the company redefining the audio market with its iconic Beats by Dr. Dre™ audio experience. The two fast-growing brands will focus on bringing high performance sound to HTC phones.
"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," said Brian 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.