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HTC To Embed Beats Audio In Smartphones

8/11/2011 10:17:57 AM Eastern

Taoyuan, Taiwan - Cash-rich smartphone
maker HTC purchased a 51 percent equity stake in audio and headphone supplier Beats
Electronics and plans a fall launch of cellphones incorporating Beats by Dr. Dre sound technology, HTC

Beats Electronics will continue to
operate autonomously with Jimmy Iovine remaining as chairman and Luke Wood
remaining president/COO. Beats will also maintain its current business
relationships with Monster Cable Products, Hewlett-Packard and Chrysler, all of
which offer products with Beats technology.

Iovine is also as chairman of Interscope
Geffen A&M Records, a division of Universal Music and an equity owners in

HTC and Beats began cooperating on new
products earlier this year.

The partnership, said Iovine,
"represents a critical step in our continued mission to clean up the
destruction of audio caused by the digital revolution and reengineer how sound
is delivered, so the consumer feels the music the way that the artist

CEO Peter
Chou said the partnership will "provide
customers with unbeatable sound on HTC phones."

Beats was created by Iovine and artist
and producer Dr. Dre.

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