Taiwanese cellphone maker HTC, has confirmed that they will be entering a strategic partnership with Beats Electronics, a company best known for its Beats by Dr. Dre line of headphones. HTC will obtain the majority stake in Beats Electronics.
The partnership is the latest move by HTC to strengthen its brand, particularly in the U.S. “With the magic of mobile devices, it is easier than ever to discover and buy new music,” HTC CEO Peter Chou said in an interview with AllThingsD on Wednesday. HTC remains less well known than rivals such as Samsung and Motorola. Chou said the Beats deal should “help create an emotional connection to HTC’s brand.”
Beats Electronics was developed by Dr. Dre, a rap performer and producer. The company is controlled by Dr. Dre and Jimmy Iovine, chairman of Interscope records. Universal Music Group, the largest of the top four record labels, owns a small minority share.The Beats headphones has emerged as a player in higher performance audio and more importantly become a status symbol among music fans and the country’s youth.
