UPDATE 2-Verizon to sell HTC Rezound with Beats audio

Thu Nov 3, 2011 6:52pm EDT

* Device will come with Beats headset

* Will compete with iPhone, Razr, Nexus

NEW YORK Nov 3 (Reuters) - HTC Corp said its latest smartphone, the Rezound, will be its first U.S. phone to include audio technology from Beats Electronics, a company it took control of earlier this year.

The Rezound will go on sale at No. 1 U.S. mobile service Verizon Wireless on Nov. 14 for $299.99, including a Beats branded headset.

But the device, which runs on Google Inc Android software, will have stiff competition at Verizon Wireless, which is also selling Apple Inc's iPhone, the Droid Razr from Motorola Mobility and the Galaxy Nexus from Samsung Electronics Co Ltd .

HTC already sells phones in Europe and Asia that use technology from Beats Electronics, which was founded by Dr. Dre, a U.S. rapper and music producer, and Beats CEO Jimmy Iovine.

The launch comes at a time when HTC is losing market share, analysts said. The company has risen in a few years from an obscure manufacturer of other companies' phones to become the No. 5 smartphone brand.

But earlier this week, HTC warned that revenue in the fourth quarter, normally a bumper sales season, would fall below third-quarter levels, as it expects phone shipments to fall to a range of 12 million to 13 million from 13.2 million.

HTC said on Monday it was more optimistic about LTE 4G phones to be launched in the first quarter.

Verizon Wireless is a venture of Verizon Communications and Vodafone Group Plc .