The CEO of HTC Martin Fichter gave an interview to CNET this past April, in which he clearly stated that for buying a smartphone, headphones are not the deciding factors. The critics have guessed by this statement that Beats and HTC might part their ways. And the guess was correct, although both the companies have not completely cut off their partnership for the time being.
Both the companies claimed that the HTC handset will continue to carry Beats audio enhancements for later this year. But Beats have also purchased back the shares it had sold to HTC last year. HTC on the other hand agrees to give the shares back to Beats, which will leave HTC with 25% of shares, while the rest 75% will remain with Beats