Apple on Wednesday confirmed that it was buying Beats Electronics, a rising music brand, for $3 billion, in a move that will help it play catch-up with rivals that offer subscription-based music services.
HP's association with Beats Audio for its range of laptops has been lengthy, and questions were asked after Apple announced the deal. An HP spokesman responded to Cnet in an email, saying the company's partnership with Beats Audio will continue until 2015.
Specifying, the spokesman added that HP would be manufacturing Beats integrated devices through 2014, and would be allowed to continue selling them until 2015. Also mentioned was HP plan to introduced a new range of devices with Beats Audio branding this year. Cnet notes HP currently uses Beats Audio in about 15 to 20 percent of its line-up.
This announcement by the firm clears the air regarding the future of HP-Beats. Apple was previously assumed to cut off Beats Audio's connection with rival PC and laptop manufacturers, specially HP. HP may still enjoy a big hit as Beats Audio integration is few of the unique features it offers on its devices.
Apple and Beats executives said the companies would work together to give global consumers more options to listen to music. The Beats brand will remain separate from Apple's, and Apple will offer both Beats' streaming music service and premium headphones.
The Cupertino giant said iTunes, which sells individual songs and albums and offers a streaming radio service, would be offered alongside the Beats music service.
Apple is paying for the deal with $2.6 billion in cash - hardly a dent in the company's huge cash pile of more than $150 billion - and $400 million in stock. The company expects the deal to be approved this year.