HTC: We Aren't Bundling Beats Headphones With Phones Any Longer

Turns out, people don't really buy smartphones based on the kind of headphones included. But hey, it was a valiant effort. The HTC Rezound featured a set of Beats earbuds right in the box, but it seems that the phone sales weren't really up to snuff. Or, at least, they weren't enough to justify the massive cost involved in bundling the two. HTC and Beats Audio are financially involved at this point, so we wouldn't be surprised to see some level of integration in the future, but it'll be some time yet before Beats earbuds are thrown in with a phone gratis. An HTC product executive was quoted by CNET as saying: "An accessory like the headphone doesn't factor in when someone is buying a smartphone. If they want a Beats headphone, they'll buy it directly."

That sounds kind of obvious, but there's no doubt that the bundle seemed like a wise risk to take at the time. Beats headphones have never been more popular, and given that many smartphones are acting as the main MP3 player for many people, the two sides seem to add up. But sales proved otherwise. HTC has spent around $300 million to acquire a majority stake in Beats Audio, but many are wondering what the use is if there aren't any people interested in buying HTC phones with Beats bundled in.

Perhaps the branding alone will help out some, but they have to sell a ton of phones just to clear that $300m entry fee.