Saturday, August 13, 2011

HTC/Beats Deal About Sex, Not Tech


HTC, Beats Electronics Partnership

HTC just invested $300 million in sexy. The company's Beats Audio deal isn't about technology. Really, nobody cares about the sonic equalization of their smartphones, at least beyond a certain point. It's about vaulting HTC from being Samsung into being Apple, from being a great technology company into being a lifestyle brand.

Now, before you go all Gizmodo on me and say "don't call gadgets sexy," sex is the point of a lifestyle brand. A lifestyle brand exists to make its users feel more appealing, more part of the in-crowd, more confident and at an ultimate, Darwinian, we're-nothing-but-mammals level, more likely to get laid.

HTC is a very successful smartphone company, and it isn't challenged by technology. The company has great tech. But as a manufacturer that doesn't own its own OS (unlike Apple, RIM, and HP), HTC is always in danger of seeing its products getting commoditized. The company can only do so much in terms of proprietary hardware and software while coloring within Microsoft's and Google's lines, and HTC has pushed its liberty to the limits with software like HTC Sense and the pen interface on the HTC Flyer tablet.

View Slideshow See all (10) slides

Monster Beats by Dr. Dre Tour High Resolution In-Ear Headphones
iBeats by Dr. Dre from Monster
Beats Pro by Dr. Dre from Monster
Monster Diddybeats High-Performance In-Ear Headphones

More

So now, Beats, which are apparently everywhere in the sports and entertainment worlds. Thanks to Dr. Dre and Jimmy Iovine, they're a brand with spontaneous, genuine street cred. Reviews of Beats headphones inevitably call out the look as much as the sound: these headphones are made to be seen by others, not just listened to.

The lousy white earbuds that come with iPods don't sound that great, but Apple has gotten a ton of brand power through having people walk into Starbucks and see everyone on line wearing white earbuds. They are so closely associated with Apple's brand that at one point, all Apple needed to do was show a picture of a skinny white cable to evoke "iPod."

By tying HTC to Beats, HTC drafts behind Beats' existing champions, hopefully gets HTC phones into the hands of sports and music stars, and may make HTC a viral brand. HTC's brand presence is still blank enough that it could easily become cool; it's not a company that has to do the work of un-becoming un-cool.

Wrap this marketing in some convincing guff about sound quality, which doesn't really come into play when you're using headphones while sitting on the bus. Then you have a rock star-approved lifestyle choice backed up with enough superior technology to make you feel like you're making a rational purchase based on quality.

On HTC's conference call, HTC CEO Peter Chou spun out a mystical vision: "HTC has always been looking for ways to differentiate and create an emotional connection with consumers. We will integrate this technology into the phone. Not purely a headset, it will not just be a headset. It will be holistic."

Yep. That has relatively little to do with technology. But it may have a lot to do with sales.

For more, see the 10 Beats Audio Products Worth a Listen slideshow above.

Sara Yin contributed to this column.


Source:http://www.pcmag.com/article2/0,2817,2390924,00.asp?kc=PCRSS05039TX1K0000762

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