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HTC Fails To Meet Financial Obligations To Beats Audio

Eric McBride
14

 

Beats Electronics, the company co-founded by legendary rapper Dr Dre and partner Jimmy Lovine, has always been a debatable piece of software in the eyes of the Android community. But love it or hate it, HTC saw enough potential in it to purchase 50.1% of the company for 300 million dollars back in August of 2011, which was a pretty hefty investment for the ailing phone maker. But now, HTC has publicly declared that they will be selling half of the shares back, as multiple sources are reporting that HTC could not fulfill their financial commitments to Beats Electronics.

The official reason as to why HTC will sell back half of the shares was to have “more flexibility for global expansion”, which honestly isn't really much of an explanation. But given the financial issues and record low profits that have plagued HTC as of late, one can only see the logic in HTC giving up their majority share of the company.

HTC will still hold onto 25% ownership of Beats, which is still enough to continue working with Beats exclusively as a mobile partner. Reports also indicate that HTC and Beats will run a global marketing campaign together later this year.

I have personally always thought of Beats as an overhyped equalizer for Android, and most people don’t notice much of a difference in sound on Android phones with Beats vs devices without it. With so many great equalizer apps on the market, it certainly isn’t something I would HAVE to have(or would in any way miss) on a smartphone. That being said, there are many people who like the "Beats Experience", so I'll simply keep my opinions to myself about if it actually does anything that other Android EQ's can't do :-D

I'm sure that HTC fans of Beats will be happy to know that they will continue their partnership with the company. Just don’t be surprised when the Beats headphones that were previously bundled with HTC devices start getting swapped out with HTC branded earphones.

What do you guys think of Beats? Does it make a difference in the sound experience on your phone, or is it more of a gimmick to you?

Picture credits: www.htcinside.de

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Comments

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  • Ti Mo Jul 24, 2012 Link

    I love my beats :)

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  • Eric McBride Jul 24, 2012 Link

    LOL! Can you really tell a difference?

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  • Ti Mo Jul 24, 2012 Link

    Well... I spent 200€ on them.. The big ones. And to be really honest. When you listen to music with a nice bass, those headphones are BADASS! But the thing is that I don't really use them that much. When I listen to music at home I do it via the speakers, and when I go out I usually use my jbud in ears(30 bucks. The quality is alright, but the headphones just suck hard. Don't stay in your ear every time something touches the cable you hear it very loud etc.)

    So the beats really are awesome. But looking at the purchase now(bought them a year ago) it was a mistake, cause I could spent those 200 Euro better.

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  • Eric McBride Jul 24, 2012 Link

    Ahhh..yeah mean the headphones!

    I ll give you that one bro..the headphones sound REALLY nice. It's the software that I'm not personally a fan of :-D

    But as far as headphones go, Sennheiser's are still (and probably always will be) my personal favs!

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  • Ti Mo Jul 24, 2012 Link

    But sennheisers look so dumb, would never go out on the street wearing them :S well at least the ones I have seen.

    And yeah I tried the software back when I had the dhd and sense 4.. And honestly... It did sound better! I wouldn't Wanna spend more money in order to get that feature, but when you turned beats audio off you did hear a significant difference!

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  • Eric McBride Jul 24, 2012 Link

    The big ones do look really dumb. I only use ear buds. I need the base in my brain!

    For big ones, I also like Beats or Sony's best.

    And yeah, there is definitely a change in quality, but nothing that DSP manager can't already do :-D

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  • Ti Mo Jul 24, 2012 Link

    Hmm cant say anything about that cause honestly Ive never really looked into that stuff..

    And I guess my next headphones will be sennheiser in ears :D

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  • Eric McBride Jul 24, 2012 Link

    You won't regret it man! Bass hits so hard in my ears that it feels like my teeth are vibrating. LOL!

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  • Ti Mo Jul 24, 2012 Link

    That does sound sick lol

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  • Robert K Jul 24, 2012 Link

    Beats is a gimmick. People who like Dr. Dre think beats is great because they like him. Its all psychosomatic. There are better head phones out there by Bose, Sennheiser and other companies. The software is even more of a gimmick.

    Companies like to make products with celebrities names on them because people who like those celebrities buy the products. Its instant marketing, why do you think Wheaties puts pro athletes on their boxes. You walk down an isle, you see headphones with Beats by Dr Dre and if you're a fan you think "these have to be awesome because he wouldn't put is name on them unless they weren't" so you shell out the money to buy them.

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  • Eric McBride Jul 24, 2012 Link

    I agree Robert, but I will admit that the headphones are pretty bad ass :-D

    @Ti Mo- Try them! You ll see what I mean :-)

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  • Ti Mo Jul 24, 2012 Link

    If you dont think the headphones are bad ass, you're either deaf or older than 40

    They are too expensive tho
    And not good for quiet music. Cause of this constant noise in the background.. Not good.

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  • CJ Brown Jul 30, 2012 Link

    Well, since Beats is still available in HP Laptops, it doesn't make sense for HTC to try & have too much of an invested interest in Beats Audio (except to do a better job if implementing into all of their Android Smart Phones) as that can be shared with other Electronic Goods Manufacturers ...

    The headphones are awesome, but I think dropping the price will offer more consumer demand ....

    Beats Audio remains an interesting concept that can be outdone with various applications (unless more work is done to keep Beats Audio relevant). Now, you offer an Android Tablet with the same audio potential a the HP Envy Ultrabook & you could have a huge demand from Consumers ...


    http://www.youtube.com/watch?v=HnX39nnowZU

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  • Eric McBride Jul 30, 2012 Link

    I don't think this will affect prices on Beats headphones, but will lower a lot of the involvement that HTC will have with Beats in general.

    Besides, the software is more or less a gimmick anyway :-D

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