HTC executive says it plans to drop Beats Audio headphones from some smartphone boxes23
The Beats Audio headphones came with certain models in the second half of last year, like the HTC Rezound and the HTC Sensation XL. But including the premium accessory forced HTC to raise prices while the competition could offer similar quality smartphones for lower prices. HTC still will include the Beats Audio technology on certain models as it needs a reason to justify last year's $300 million purchase of 51% of the audio firm. The idea was to differentiate HTC's handsets from other manufacturers.
With the headphones now out of the box, there is speculation that HTC could be looking to turn Beats Audio into a streaming music service that would still give HTC buyers a proprietary Beats Audio experience without adding to the cost of selling phones.