In the Future, HTC May No Longer Bundle Beats Audio to its Smartphones
HTC may finally realize that it turns out, people don’t buy phones based on the type of headphones bundled, but it’s still a commendable effort nonetheless. Out of the box, HTC Rezound featured a special kind of earbuds as a part of Beats Audio solution, but the phone sales were somewhat disappointing and the revenue generated wasn’t enough to justify the cost involved in integrating the advanced audio technology. Both, Beats Audio and HTC are financially involved, so it wouldn’t be surprising to see deeper integration sometime in the future. Beats earbuds were thrown in with HTC Rezound gratis and an HTC official recently admitted that many accessories like headphones don’t factor in when someone planning to purchase a smartphone. If they want to buy a fancy headphone, they will buy it separately.
There’s no doubt in anyone’s mind that bundled accessories often seem like a wise risk. Given that many people use smartphones as MP3 players and Beats earbuds are highly popular; the two items seemed to add up. Unfortunately, the sales record proved otherwise. To acquire a major stake in Beats Audio, HTC spent about $300 million and now, many are wondering whether there’s other way to integrate Beats audio products and HTC smartphone. Obviously, HTC needs to sell millions of Beats bundled phones only to justify the $300 million stocks purchase.
Beats Electronic, LLC is a major manufacturer of audio equipments and products. The company was established by Andre Young (Dr. Dre), a hip/hop artist and entrepreneur. Since its inception, the company has a close collaboration with Monster Cable, a consumer electronic company, which leads to a financial success for both. In 2011, Beats Electronics products accounted for slightly more than 50 percent of the headphones market.