HP Still Selling Beats Products
Apple (NASDAQ:AAPL) is acquiring Dr. Dre’s Beats Electronics for $3 billion, but Beats Audio products will still be available at HP (NYSE:HPQ).
A spokesperson for HP says the company has the right to develop new products with Beats Audio through the remainder of 2014. HP is also allowed to continue selling Beats-branded technology until the end of 2015.
Beats is currently integrated into nearly 20% of HP consumer PC products, from desktops to tablets. HP also sells the popular Beats headphones, which retail for about $200 to $300.
“HP will continue to develop and offer leading products that include premium technology experiences, including the richest and most dynamic sound experience,” according to the company statement.
The lost Beats opportunity comes at a difficult time for HP, which has experienced sharp revenue declines. The company recently revealed that it will be laying off 16,000 employees, beyond the 34,000 already planned.
Once known for its personal computers and printers, HP has struggled to adopt to an evolving market centered around mobile devices and cloud computing.
Meg Whitman was named HP CEO in September 2011 -- shares are up 43% since that year.
HP shares are up 20% year-to-date, and are currently trading around $34. The company has a market cap of $64 billion.