UPDATE 2-Verizon to sell HTC Rezound with Beats audio

Thu Nov 3, 2011 10:52pm GMT

* Device will come with Beats headset

* Will compete with iPhone, Razr, Nexus
(Adds background)

NEW YORK Nov 3 (Reuters) – HTC Corp (2498.TW) said its
latest smartphone, the Rezound, will be its first U.S. phone to
include audio technology from Beats Electronics, a company it
took control of earlier this year.

The Rezound will go on sale at No. 1 U.S. mobile service
Verizon Wireless on Nov. 14 for $299.99, including a Beats
branded headset.

But the device, which runs on Google Inc (GOOG.O) Android
software, will have stiff competition at Verizon Wireless,
which is also selling Apple Inc’s (AAPL.O) iPhone, the Droid
Razr from Motorola Mobility (MMI.N) and the Galaxy Nexus from
Samsung Electronics Co Ltd (005930.KS).

HTC already sells phones in Europe and Asia that use
technology from Beats Electronics, which was founded by Dr.
Dre, a U.S. rapper and music producer, and Beats CEO Jimmy
Iovine.

The launch comes at a time when HTC is losing market share,
analysts said. The company has risen in a few years from an
obscure manufacturer of other companies’ phones to become the
No. 5 smartphone brand.

But earlier this week, HTC warned that revenue in the
fourth quarter, normally a bumper sales season, would fall
below third-quarter levels, as it expects phone shipments to
fall to a range of 12 million to 13 million from 13.2 million.

HTC said on Monday it was more optimistic about LTE 4G
phones to be launched in the first quarter.