After five years of “beating” down the competition, Beats has chosen not to renew its contract with Monster due to disagreements in profit distribution and credit, according to Business Week. With the contract slated to end towards the end of 2012, it isn’t surprising that either company should want more – they currently dominate 53% of the headphone market, as reported by research-analysis group NPD.
A large part of their success can be attributed not just to the design of the headphones, but the fact that they were actively endorsed by celebrities, which has turned their product into a “fashion” statement. Because let’s face it – the headph0nes don’t sound that great for the price, but having them slung around your neck definitely makes heads turn.
Nevertheless, it will be interesting how either company will fair on their own, especially since Beats technology has crept into the smartphone market, finding its way into HTC’s Sensation. Monster on the other hand, while primarily known as a manufacturer of high end stereo cables, is reportedly releasing a line of eight headphones to directly compete with Beats (pictured above).