Beats partnership with HTC deterioration! Caused great losses for HTC

As it looks to expand beyond its now ubiquitous Beats by Dre headphones, Beats Electronics is reportedly looking to buy out HTC Corp.’s stake in the company and find a new investor in order to fund growth. To do so, though, it needs to prove that the company’s prime product is not just a fleeting trend but a brand that can play more widely in the audio industry.

which is based in Santa Monica, California, could not confirm any details on the upcoming investment and HTC wouldn’t say whether it plans to sell its stake. But when Beats first partnered with the smartphone maker, the company president told us that the idea was to use the alliance as a way to get Beats by Dre technology into smartphones. The Taiwanese manufacturer, in fact, loaded Beats audio into most of its devices, from the HTC Rezound back in 2011 to the HTC One more recently.

But it may not have been in as many smartphones as Beats might have hoped. At the time of the 2011 deal, HTC held 20 percent of the handset market in the United States, but it’s been losing ground amid marketing missteps, and new competitors, and it’s no longer even one of the top 5 phone brands at retail domestically.

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