This could be Apple’s largest acquisition to date. According to the Financial Times, Apple is about to close the acquisition of Beats Electronics. Beats is the maker of the popular Beats headphones, as well as the music service called Beats Music.
If it closes, the deal should be announced next week, the FT reports. The two companies have yet to agree on some financial details. Apple is interested in the two parts of the business — the headphones product line and the streaming service.
2 of the sites most BELOVED brands coming together… I actually like Apple, but am kinda surprised to see them interested in Beats for more than their streaming service. Will be interesting to see what comes of this.
Can't say I saw that coming, if this goes through and they start implementing iphones with silly beats stuff on it then I shall not touch a iphone any time in the future.
Can't say I saw that coming, if this goes through and they start implementing iphones with silly beats stuff on it then I shall not touch a iphone any time in the future.
and the WSJ article on line says that this is apple's move to complement current lower-fi earbuds with (sit down, prepare yourself) 'high-end headphones'
I think it's more to do with the Beats music streaming service, and possibly patents if Beats has any. Apple is technically a bigger brand than Beats in terms of media exposure anyway, so I doubt they'd acquire Beats for the branding.
Funny though. I've often branded Apple's biggest hardware competitor, Samsung, as having no taste - copying hardware designs, TouchWizz UI, Swarovski studded handsets, articicially boosted benchmarks - but Apple devices having "Beats by Dre" branding on the back would bring testelessness to a whole new level. Shame really, because I like the iOS app ecosystem and can't see myself getting the same quality apps from Android.
I truly hope this acquisition is to eliminate a competing music service and acquire whatever might have been of engineering value, effectively killing Beats as a brand in the process. The Beats founders will cash out, I'll remain on iOS, and we all won't have to see the Beats logo ever again. Wishful thinking.
Edit:
The more I think about this, the more it just doesn't make sense for Apple. It's definitely not about the branding. It's definitely not about the technology as Apple could design higher quality accessories in-house if they wanted to, and it doesn't even make much sense for the music streaming (especially for the price of 3.2 billion) since Apple's iTunes Radio already has their own lucrative streaming deals in place. Then again, I'm no analyst.
You know, I have been thinking about this too and I agree on two of your points but I think they are doing it for the style. I feel like apple may be worried they will lose their image the longer they go without Steve at the helm. I feel like if they start including really fancy looking earbuds and package selling Iphones with different level headphones (Think good, better, best) at different price points. I feel like they would pull more people in then they would lose. Lets not kid ourselves Beats is extremely popular in main stream and so is the Iphone. If they could attract more people, charge more for having nicer headphones included on certain models, and kill a competitive streaming service in one swoop.....That 3.2 Billion may pay for itself in no time.
I think that assuming Apple will do anything obvious is a bad idea. This happens because they don't give any hints about what their plans are, which are very often not what people expect when it comes to new markets. If they are going to buy them, then they have something in mind far more interesting than just buy-and-label-in-store.
They can hire some of the best audio engineers out there. Apple is not a company that will tolerate their product being second tier, ie making headphones that are clearly outclassed by Senn, AT, Beyer, AKG, etc.
Prepare for some really expensive and really nice headphones.
I think that assuming Apple will do anything obvious is a bad idea. This happens because they don't give any hints about what their plans are, which are very often not what people expect when it comes to new markets. If they are going to buy them, then they have something in mind far more interesting than just buy-and-label-in-store.
And the general perception problem for established brands. Kids don't want to be on Facebook anymore since their whole family, parents, aunts anreven grand parents hang out there. If there is one thing I can remember from my long gone pubertal times, it's not being where the older generation is.
Apple loves music - they very often iterated that and the great audio quality of their hardware (maybe except the EarPods) are testament to it. How beats (and IF that is true) fits in there, well... I don't know yet, but I am sure Apple won't splash out serious money like this without a very good plan.
However since Apple sells beats products in their stores, they have a very good insight about the products itself (and the recent quality improvements they made) and the sales/return/warranty figures.
They can hire some of the best audio engineers out there. Apple is not a company that will tolerate their product being second tier, ie making headphones that are clearly outclassed by Senn, AT, Beyer, AKG, etc.
Prepare for some really expensive and really nice headphones.
Hmm, but that's what I don't understand, since the original iPod their headphones were outclassed pretty much from the start for the last 13 years. Even the aftermarket ones, the Apple in-ears. The EarPods and the in-ears are both ok, though not really great and you could find better sounding headphones for less. In the Apple online store both headphones have a 4 and 3 star rating by customers...on Amazon a 3.5 star rating.
Can't say I saw that coming, if this goes through and they start implementing iphones with silly beats stuff on it then I shall not touch a iphone any time in the future.
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