Despite Dr. Dre's Beats technology branching off into laptops and phones, via deals with HP and HTC, their headphones are the backbone of the brand. Until recently, the Beats By Dre headphones were manufactured by Monster Cable, but the two companies have decided to sever ties. According to Business Week, Beats and Monster will not be re-upping on their contract, due to a disagreement over money and credit. "Though both companies publicly say the separation is amicable, the relationship turned sour over financial terms, with divergent views on which side deserves the most credit for the line's success and Beats balking at its share of the revenue," Business Week writes. Additionally, Monster said that Dre and Jimmy Iovine wanted to do speakers, but the company convinced them otherwise. Noel Lee, Monster's chief executive said, "They wanted to do speakers and I said, 'The new speaker is the headphone." For things like this, Monster feels they should be given more credit, and Beats wants more revenue. Although Beats made up a lot of Monster's revenue -- nearly 60% -- they plan to move forward, attempting to re-build a headphone empire. Business Week said Monster might merge with or buy out SOL Republic, a headphone company founded by Kevin Lee, son of Monster founder Noel Lee. However, nothing has been confirmed. As for Beats By Dre, it's likely, they'll continue to license out the brand name, which is one of the main attributes of their success (branding and its fashion appeal). Stay tuned...
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