Beats Electronics Wants to Kick HTC to the Curb, Find New Investors
August 19, 2013 12:28 PM
Jimmy Iovine, Peter Chou, and Dr. Dre
HTC is sinking, and Beats wants out
As HTC continues to sink, Beats Electronics is looking to bail and possibly search for other investors.
The Wall Street Journal
reported that Beat Electronics LLC -- the audio products company founded by rapper Dr. Dre -- wants to buy out HTC in their smartphone venture.
In August 2011, HTC acquired a majority stake at 50.1 percent in Beats Electronics for $300 million USD. The venture aimed to help HTC gain market share from Samsung and Apple smartphones, and help Beats enter the smartphone market.
However, in mid-2012, HTC was forced to sell back half of its stake in Beats due to a huge
decline in revenue and profits
. This resulted in a net loss of $4.8 million for HTC.
Today, things don't look much better for the Taiwanese gadget maker. According to
The Wall Street Journal
, HTC's sales have fallen below $4 billion since Q4 2011. The company also predicts its first operating loss this quarter.
, which was reported last month, HTC took in $70.7 billion TWD ($2.35 billion USD) for the quarter -- which fell below analyst expectations of $72.8 billion TWD ($2.42 billion USD). Profit was at $1.25 billion TWD ($41.5 million USD), which fell short of the $2.17 billion TWD ($72 million USD) analysts expected
Recognizing that HTC is a sinking ship, Beats is reportedly looking for a buyout and may look for other investors so that it can keep its foot in the smartphone market.
There's no word on whether HTC is willing to sell the rest of its stake, but HTC may want to hold onto Beats, as this is one of its draws in smartphone sales.
HTC has tried to turn its business around with the release of new smartphones like the HTC One, which
grabbed 5 million sales
in its first month of availability despite issues. It's even planning a
5.9-inch HTC One Max
Last month, HTC went through
an executive shake up
in hopes of making a fix, where President of Global Sales Jason Mackenzie was chosen to lead HTC America, and President of North America Mike Woodward was chosen to lead Emerging Devices, a new business unit that will focus on innovative new HTC products and global distribution strategies.
The Wall Street Journal
"Well, we didn't have anyone in line that got shot waiting for our system." -- Nintendo of America Vice President Perrin Kaplan
Quick Note: 5.9" HTC One Max Shown in New Photo
August 5, 2013, 9:03 AM
HTC Trainwreck Continues, Q3 Earnings Forecast Slashed 30 Percent
July 30, 2013, 9:00 AM
HTC Shakes up Executive Ranks Amid Stock Slump
July 22, 2013, 12:45 PM
HTC One Hits 5 Million Sales in First Month, Despite Issues
May 23, 2013, 4:04 PM
Apple Watch NikeLab Limited Edition unveiled.
April 22, 2017, 6:20 AM
What is the Apple’s iPhone 8 specifications and release date?
April 14, 2017, 5:43 AM
Xiaomi Mi Pad 3 tablet with Hexa –Core SoC, Android Marshmallow
April 6, 2017, 6:40 AM
Vivo launches V5 Plus IPL edition smartphone
April 4, 2017, 11:10 AM
Samsung S8 and S8 Plus: On Sale April 21 at Major Wireless Dealers
March 30, 2017, 7:35 AM
Are You in the Market for Earphones?
March 24, 2017, 7:35 AM
Most Popular Articles
Surface Pro 5 Rumors - New Release Date and Price
April 22, 2017, 6:45 AM
ASUS RT-AC5300 – Ultimate Game & 4K Streaming
April 18, 2017, 7:45 AM
Dell Inspiron 17 7000 – A Premium Laptop featuring 7th Gen Intel Core i7 in a 2-in-1 Frame.
April 19, 2017, 7:45 AM
Meet the Smartphone with four cameras - Alcatel Flashphone
April 5, 2017, 11:20 AM
Vivo V5 Plus – the Selfie Softlight is on You.
April 17, 2017, 7:05 AM
Latest Blog Posts
Samsung Galaxy S8 and S8 Plus – Lots of Glass that Breaks Easily
Apr 25, 2017, 7:20 AM
Samsung Galaxy S8 – Warning for Pet Owners
Apr 24, 2017, 5:59 AM
Sound Bars and the Costs?
Apr 23, 2017, 6:30 AM
Link your Brain to Your Computer – In Four Years…Maybe
Apr 22, 2017, 7:03 AM
Google Home can now identify users by their voice.
Apr 21, 2017, 7:15 AM
Amazon Lex – Now Available for Developers.
Apr 20, 2017, 6:58 AM
You can now use Instagram offline on your Android Smartphone
Apr 19, 2017, 8:00 AM
Now you can livestream to YouTube from your mobile device.
Apr 18, 2017, 8:05 AM
Google Home – Is It a Spy Device?
Apr 17, 2017, 7:30 AM
Apple added to self –driving test permit list
Apr 15, 2017, 6:21 AM
Project Scorpio – Coming on June 11
Apr 14, 2017, 6:20 AM
Looks Like Samsung Has Been Forgiven.
Apr 13, 2017, 6:50 AM
United Airlines - Blasted on China’s Social Network and the Stock Market
Apr 12, 2017, 6:50 AM
Amazon's Third-Party Sellers Hacked
Apr 11, 2017, 6:25 AM
Microsoft Surface Pro5 Details Revealed
Apr 9, 2017, 6:41 AM
Own An Android Phone? Then you could be hacked over Wi-FI
Apr 7, 2017, 6:47 AM
Apple confirms iOS 10.3 bug and its effect on iCloud Services
Apr 6, 2017, 6:30 AM
Apple Rolls Out New Version of Apple Music
Apr 5, 2017, 10:35 AM
Apple in the News
Apr 4, 2017, 9:03 AM
Apple iPhones Will Soon Feature Graphics Chips Designed BY Apple
Apr 3, 2017, 6:23 AM
AMD Ryzen Desktop Processors Performance
Apr 2, 2017, 6:30 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information