HTC Pays Big for Beats Technology, Will Bring High-Performance Sound to Smartphones

The Taiwanese mobile phone maker HTC has just struck a deal with Beats Electronics for $309 million, buying 51% stake in the company. 

With the new deal, the two companies will focus on bringing high performance sound to HTC phones, which the mobile phone company hopes will diversify it from the competition. Beats Electronics will continue to operate independently, while HTC tries to attract a younger audience and enter the accessories market globally. 

Beats Electronics, the brainchild of rap artist Dr. Dre and Interscope Geffen A&M Records chairman Jimmy Iovine, was established in 2006 with the aim to develop a headphone with the capability to reproduce studio sounds. The earphones are high-end brands that start at $100. 

HTC CEO Peter Chou plans to improve the audio fidelity on HTC devices via Beats’ technology, though it is still to be seen if consumers will crave a smartphone with better speakers due to the abundance of users who listen to music from their handsets on headphones. The exclusive partnership between HTC and Beats only covers phones, though it seems the Taiwanese company’s tablets would benefit at least as much.