HTC has sold half of its 50.1 percent stake in Beats Audio, less than a year after it acquired its share of the company for $309 million. The move leaves HTC with a 25.57 stake in Beats, with the remaining 24.53 percent being bought back by the company's founders, Jimmy Iovine and Dr. Dre, for $150 million. This comes after a year in which Beats failed to emerge as a major differentiator for HTC's smartphones, and after the company reversed its decision to include premium Beats-branded earphones with its high-end HTC One series phones.
In a statement, HTC said it will continue to "work closely" with Beats, and despite the sale, it's expected HTC will continue to include Beats software enhancements in future smartphones.
HTC remains in a somewhat uneasy position, following strong competition from Samsung and Apple in the mobile space. The company's second quarter numbers showed a 57.8 percent year-on-year fall in net profits, following lower-than-expected sales of the HTC One series. Despite this, HTC remains a major force in the smartphone world, as recently released Nielsen numbers show the manufacturer with a 14 percent market share in the U.S., behind Samsung's 17 percent.
Source: Yahoo Finance
Reader comments
HTC sells back half of its stake in Beats Audio
Dont hate on beats- i luv beats collection cuz my preference is strong deep bass sound that i find on beats headset...again this is my preference...the problem with HTC is their "one" phone not up to par with sgs 3... But american version sgs 3 dual core...im waiting for quadcore lte from samsung.....again if htc will update to quadcore 4g lte,add high def screen with expandable micro xd slot, aluminum casing and add beats coupon(allow customer choose which headset)i would recommend solos....this would allow htc to compete with samsung or even iphone 5......Or better yet be the first company to offer phone you can order based on customer's preference just like when you order pc or laptop from dell...that would be awesome!
Beats audio is just part of the current fad where all of these idiot people equate quality headphones with huge mark-up and an increase in bass. It's no different then Bose' snake oil they have been selling for years or Monster Cable's ridiculously high cost rip off prices for cables (which by the way Monster Cable generally makes Beats headphones.) Meanwhile, all these people are talking about how they got these awesome headphones that are super high quality and they're listening to 128 kbps mp3 rips and have it playing so loudly that they are most certainly are causing long term hearing loss. I've worked in recording studios and used fantastic equipment and seen headphones that are actually worth the Beats audio price tag but it sure as hell isn't anything you can buy in Best Buy or other major chain stores. I haven't bothered spending the money on those nice cans either because I know for day to day use, a standard $20 pair (which is still a high price compared to manufacturing cost) from any store will do just fine given most sources of audio people use every day (especially since good headphones require a good preamp.)
I've owned many HTC phones that have been awesome. They've been one of the pioneers in quality smartphones since before Apple introduced the iPhone. I was sad to see them invest in Beats, but given the amount of money spent on Beats-esque headphones, I figured hopefully it would turn a decent profit for them, help them gain a better market share and bring even more awesome phones. It appears to have not helped them with that and now they are regretting it.
My friend bought the HTC One X since he's on AT&T at my suggestion a bit ago because he wasn't going to wait for the Samsung S3 but now I'd say it's a toss up with a slight favor for the Samsung Galaxy S3. I'd say there are a few poor choices on the One X and that the Evo LTE is essentially the One X without the poor choices. The Evo LTE specs should have been the phone for HTC on AT&T and Sprint. I'm looking forward to see what Samsung comes out with in August that they're already talking about. I hope its a newer Phablet with better specs and I hope HTC jumps on that bandwagon and attempts one.
Obviously, HTC realized that beats doesn't sound 'half' as good as the hype 'surrounding' it.
If you catch my drift. ;)
Strange how people say HTC is far worse than Samsung.
Sammy has always left me with a bad impression - ugly designs, buggy software, extremely poor service & updates...
Dre is SWOLE!!
i noticed when i had my htc vivid after it upgraded to ice cream sammich it had beats and it really did make a difference. but on the one x.. there's only minor improvement. but still i like it.
Wow - Dre is getting old ...
I still love HTC - really hope they survive.
And I really want them to make One X type phone with SD card lot on GSM (including Tmo bands)- I really don't want S3
As far as beat - i think it's a gimmick ... but then again i'm kind of deaf when it comes to hearing the difference in sound with Beat on or off ... i just can't tell the difference
HTC and beats missed the perfect opportunity to differentiate themselves from all other android devices. The beats software that comes standard on all HTC devices should have incorporated full three button functionality (play, pause, next track, take call, etc) that works with a set of included beats licensed ear buds. That could have been a big selling point for HTC. I know there are apps in the market that due this but they leave something to be desired and are plagued by bugs. By writing the software and making the accompanying hardware they could ensure seamless functionality. And with certain colored wires It could also help with marketing, kind of like back in the day when you saw a white ear bud wire and you knew it was an apple product. If only someone at HTC would have read my email.
The beats audio on the One X is a gimmick. With headphones it adds a little to the low end (where earbuds are often lacking), but connect the phone to any decent home or car audio system and the beats audio sounds god awful. Like they took an equalizer and cracked the low end and pushed down the mids and highs.
You see these beats is ugly.
Never used Beats but I'm plenty happy w/ the stock EQ settings & $5 headphones I use with my SG3!
Smart people know that Beats isn't that good of a product.
There profits are way down. Stupid decisions like with the OneX (only 16 GB of storage and a small non-removable battery), and what they just pulled with the Desire HD update to ICS (which they promised for months then changed there mind) are driving people to other manufactures. Yea they may very well end up like RIM. I for one will never buy another HTC product.
I have an EVO 3D. It has had lots of issues. My next phone will likely be a Samsung
While I so admit they should have gone with a larger battery and expandable storage, you do know that the One X has a longer life off a full charge than the SGS3 (which has a larger battery)
Im a Desire Hd owner & becouse of HTC lack of adriod upgrades there broken promises & lies im another angry customer that would never again buy anything with an HTC logo on it. Im letting all my family & friends know what HTC are they take your money then move on leaving you angry. Its Simple dont buy HTC.
+1
Beats is crap
Or release a phone, promise to update it to ICS then wait for the next version of Android to drop, and still not release the ICS update you promised people. No love for the Rezound still!!!!
My Evo 3D is right there with you.
HTC is stupid. Keep making subpar phones and end up like RIM.
+1
There is only one phone that competes with the One X and that is the SGS3. Had HTC included a micro-SD slot, this wouldn't be a competition. HTC would have won. The lack of SD, and HTC's botched attempt at multitasking makes the SGS3 more appealing, although there is no way you can tell me the look, feel, and screen on the One X aren't better.
+1
Without that screen, the One X has no leg to stand on. The look and feel is largely irrelevant considering that many people don't appreciate the same aesthetics. The people who are already obsessed with carrying something that "feels nice" or "trendy" already own an iPhone. The Android world has spoken. The GS3 is the superior device. Period.
they also would have sold more if they didn't limit the internal storage, no SD card is fine but only 16g? and yes they better come out with something better than incredible 4g on VZW. a phablet would rock as there is no competition, Sammy racked up on ALL peep wanting a phabletgot all those customers to themselves...
Not including 2 gigs of RAM was a bad decision too.....
This. + Non-removable battery, no SD slot, still the same crappy beats audio, average quality camera, plus their so called unbreakable ceramic shell was actually defective. I wonder why the One X sold as many devices as it did. Then again if millions of people can buy expensive Apple devices just by the brand name, guess I shouldn't be too surprised.
Not adding 2gb of ram was a mistake. But I will live with my 1gb of ram in this damn good looking phone over having that craptastic looking S3 in my hand. I also like being able to use my phone in direct sunlight, which you cant do with the S3 (at least not the one my buddy has). You may dislike the One XL, but for me it was perfect. There really wasn't much choice either, One X or S3.
Beats is stupid.
They would have sold more than three One Xs if they brought it to the US on something other than AT&T.
they did - HTC Rezound w/ Beats + Headphones on VZW
O_o
he is referring to the one x only being on att not beats. goober.
LMAO! True though, if there was a version for VZW I'd go buy it today.
Still love HTC. Still use my beats solo on my Evo LTE.
What up, Dre!