August 22, 2012 12:03 pm
HTC may drop Beats integration from its future handsets, if a rumour from MyDrivers pans out. The Taiwanese company has been shedding cash in recent quarters despite successful product launches in the One X and One S. It also recently half of its 51% investment in Beats Audio back to the original owners at a slightly loss.
Beats integration was one of the premiere features of the One series including the One X, One S and One V, but the company has been backtracking on its commitment to the brand as it is under pressure to cut costs. Apparently, its investors and board of directors have pressured the company to launch high-end phones at a lower price to better compete in the market.
Samsung is the de facto leader in the Android market, and while HTC has continued to wow a small segment of the market with its high-quality products, its margins are much lower than its Korean counterpart due to supply chain limitations. Pricing its handsets lower than they already are would mean even more of a pinch on profits, something the company can’t afford. We’re likely to see HTC shedding even more excess in the coming months as it struggles to stay afloat. Diving into the enterprise market may be a good start, but we’re holding out hope for a longer-term solution that doesn’t just involve shedding the few brand tie-ins it already has.