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
sound technology, HTC announced.
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 Beats.
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 intended."
HTC 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.