HTC to Scrap Beats Audio Integration to Create More Affordable Smartphones

HTC has been struggling to gain market share for its One series devices that were launched earlier this year at Mobile World Congress. The once strong smartphone manufacturer may be looking to abandon its plans to continue to integrate Beats Audio into future devices in order to create more cost-effective smartphones as it battles Apple and Samsung.

After having announced the HTC Rezound in the U.S. with Beats Audio and entry-level Beats in-ear earphones for Verizon Wireless, HTC had stopped including the headphones in smartphone models that have since launched with Beats integration citing costs.

According to Unwired View, supply chain sources indicate that HTC may lower the price of its smartphones–both on current-generation devices that are currently available today as well as on future Android and Windows Phone 8 models that are unannounced–to stay competitive. In the U.S., the HTC One X on AT&T was once the flagship and premier Android smartphone mode, but the smartphone was quickly eclipsed once Samsung debuted the Galaxy S III. Since then, the One X has been discounted a few times already.

It’s unclear if HTC will position itself as a mid-range smartphone-maker in the future as a result of price reductions. On the mid-range and budget line, HTC will have to compete with emerging Chinese manufacturers ZTE and Huawei.

Update: HTC has response. Please see the updated post on GottaBeMobile.