HTC has decided to not include Beats Audio headphones in future models of handsets, as part of an effort to boost profitability.  As the last few months have proven, consumers don’t want to spend extra money to buy smartphones with Beats Audio headphones. A number of models including the HTC Sensation XE, HTC Sensation XL and HTC Rezound have come with Beats cans but none of them have been smash hits on their respective carriers.  HTC has come to the realization that most people don’t want to cough up the added money for the headsets, something we feared back when they acquired stake in Beats Audio.

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. – Martin Fichter, HTC

Cutting the headset from SKUs will not only save consumers money in the end, but it will help HTC to eke out some extra profit margin. It should also lessen confusion for buyers who aren’t aware of the differences between one model to the next.

This isn’t to say that HTC is abandoning their Beats initiative and taking a $300 million bath, rather they need to employ different tactics.  Perhaps one way to help push the Beats agenda is to offer coupons or promotions with each purchase of a Beats-enabled HTC phone or tablet.  Or vice versa, giving a promo code for an HTC product with each Beats earbuds, headphones, or speaker dock that leaves the factory.

Source: CNET