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Apple is reportedly planning to acquire Beats for $3.2 billion

Flashy

Distinguished Member
I immediately thought 'why would Apple want to buy a headphone manufacturer?', but I didn't know about the Beats streaming service. I'd imagine that would be the attraction, rather than the hardware, as it would give Apple an 'in' on Android devices.
 

instigator

Established Member
the headphones are hideous...

i guess the streaming platform might be useful... meh...

pointless...

i dunno...
 

hippo99

Distinguished Member
The one upside would it might replace the standard leaky Apple earbuds which are so bloody annoying- whenever you hear someone's loud music on a bus/train, 99% of the time it's someone using Apple earbuds :mad:
 

Iain42

Prominent Member
Low resolution music into low resolution headphones! Perfectly matched I would say.
 

dc8900

Distinguished Member
The streaming service can be the only IP I think that Apple would really want, I wonder if they will do a 'Googorola' and take the pick of the crop of IP and staff; and then sell off the remaining hardware division.
 

New Start Neil

Distinguished Member
They'll get 2 massive names if this turns out to be true.

Jimmy Iovine is one of the most influential people in the music business (he makes Simon Cowell look like an apprentice).

I'd imagine this is what they want, as may well be the bridge to the Apple equivalnet of Spotify that everybody wants.

Secondly, Dre is also a massive worldwide name and apparently there's a huge percentage of African Americans (is it just me that dislikes that expression?) that use Android handsets, so maybe Apple have decided he's a good way to tap into that market and sell more iPhones?

Also, from a marketing perspective, Iovine & Dre have done a remarkable job with Beats-from what I've read, they are very bass heavy and give poor quality to other brands that cost less, but nonetheless, people lap them up at the prices they ask (having them worn by most of the NBA, the NFL and countless other music and rap stars won't have hurt either.

Iovine was also part of American Idol a couple of years ago and I remember saying to my wife at the time about how much Beats product placement there was.

It was pretty much every shot that involved him, had a Beats item in it (even if he wasn't in shot)-it might be a lone Microphone, a set of ear/headphones, but the placement was unmissable.

It was only after Googling, I discovered that he was head of Beats.

Lastly, I'm not convinced this is just about expensive (and profitable) headphones and the Beats music streaming service, I have a feeling that Apple's incoming iWatch will play some part in this too.

Beats headphones are as much a fashion accessory as they are a pair of headphones (more so if you listen to the audiophiles who constantly go on about how crap they are!) and that might just fit in nicely with the incoming iWatch (from a 'marketing to fashion the fashion conscious' point of view).

I'm not for one moment suggesting that Apple will release the iWatch equivalent of a set of Beats headphones, but I do just feel there's a crossover that no one has considered yet
 

Flashy

Distinguished Member
I think it's the most interesting thing Apple has done for years, probably since unveiling the iPad. There's got to be more to it than acquiring a streaming service and some headphones. Got to be. Hasn't there?!
 

thecollective11

Novice Member
I think its also about tax. Apple have billions in cash and if they acquire assets then they reduce their overall tax bill in the US. It's the same with Pfizer and AstraZenica.
 

New Start Neil

Distinguished Member
I think its also about tax. Apple have billions in cash and if they acquire assets then they reduce their overall tax bill in the US. It's the same with Pfizer and AstraZenica.
I disagree.

If they acquire the wrong asset(s), that ultimately lead to a loss in sales/profits, then any tax saving would be gone.

Apple are far too shrewd to just do this for tax savings IMO, there's a rabbit just waiting to be pulled out of a hat somewhere...
 
D

Deleted member 92943

Guest
People may not like Beats and their products but like Apple, they are a Huge brand. Its more style over substance with their products but especially with the younger generation, they are hugely popular.

I just cant see Apple shipping ipads/phones ect with Beats earphones included.
 

Iain42

Prominent Member
People may not like Beats and their products but like Apple, they are a Huge brand. Its more style over substance with their products but especially with the younger generation, they are hugely popular.QUOTE]

That makes them a perfect match then :).
 

instigator

Established Member
just because they can?

its been a while and correct me if i'm wrong but still no "official" announcement?

i think if it happens it is for Iovine... he can't work with competitors of beats so they bought beats...

my band sells 99% of our music via iTunes and this is all around the world... amazon comes in a far 2nd place...

i want my songs on iTunes and iTunes only really... it just makes sense...

everything else just makes money for weasels...
 

instigator

Established Member
the word on the street is that Dr Dre spoke about the deal before Apple wanted to go public and that this could have killed the deal altogether but they are working on trying to salvage it...

hilarious...
 

dc8900

Distinguished Member
good grief...

And here was me hoping that the video Dre's mate posted had scuttled the deal, lol. I really hope I'm proved wrong but unless Beats gets carved up for IP, acqu-hires etc; I just don't see how it will fit into the company.
 

instigator

Established Member
even if they just leave it alone it is a cash cow... don't they make like a billion cash money a year?
 

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