In a move meant to improve the multimedia experience on its handsets and consolidate its brand value in the US, HTC has decided to invest $300 million in Beats Electronics, the digital audio company. The primary investment of the Taiwan based phone handset manufacturer will be directed towards the audio processing technology possessed by Beats, which is expected to be integrated into the cell phones and tablet computers HTC will manufacture in the future.
It has been said that at least one of the devices manufactured by HTC this year will feature the new audio processors; however, the company has not yet specified which device it will be and when it will be released. Both the companies released a statement saying that this is an exclusive partnership just for the phones manufactured by HTC. Beats is the provider for a portion of the high end audio technology used by HP in its computers; however this is the first time the company has collaborated with a mobile phone maker.
This move by HTC of investing in a company for high end audio technology is expected to considerably improve on the multimedia capabilities of the handsets it produces, especially since the company is now renowned for creating high quality Android phones which cash in on the ability of smartphones to handle audio and video.
As of yet HTC has released various phone models which offer 4G and even 3D video capabilities with a number of carriers, making a name for its powerful media centric devices. As the products of Beats are now coming up as high end players in the market for high performance consumer audio, this union is expected to provide HTC’s products with an edge.
It is also being said that through its deal with Beats, HTC may even be able to develop its own brand value in the US. Even as the company has enjoyed great success and its revenue has skyrocketed, it still remains behind competitors such as Samsung, Apple and Motorola. Apple, one of the biggest phone makers in the market, has always been known to provide a great audio experience through its devices.
According the chief executive of HTC, Peter Chou, the association of HTC with Beats, which produces some of the best high quality headphones which are a status symbol for music aficionados, will help music fans connect emotionally with the HTC brand.
