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Apple Said to Be in Talks to Buy Beats for $3.2 Billion

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21–30 of 165 posts

Re: Apple Said to Be in Talks to Buy Beats for $3.2 Billion

#22
post #5

Earlier quoted context omitted.

Supposedly (according to Recode.net) Beats music only has around 200,000 subscribers and most of them are free trial users from a AT&T deal. Doesn't sound a like a service Apple would want.

Perhaps they have favourable licensing deals for music content that would survive the acquisition....

Its doubtful that the deals would automatically transfer over to the acquirer. Would have to be re-negotiated

Re: Apple Said to Be in Talks to Buy Beats for $3.2 Billion

#23
post #11

$3.2B? I don't get this at all. What exactly does Apple get out of the deal? (1) Their brand is much stronger than Beats. (2) They could design and build high quality headphones if they wanted, the design is quite simple. And (3) if they wanted a music subscription service, they could easily create one of their own.

> if they wanted a music subscription service, they could easily create one of their own.

Actually, they have one. (iTunes Radio)

Of course, the fact that this has to be pointed out to someone arguing how strong Apple's brand is relative to Beats might illustrate the value they get from buying Beats better than anything else.

Re: Apple Said to Be in Talks to Buy Beats for $3.2 Billion

#24

This seems like a strange thing to acquire. It's not like Apple couldn't make headphones of that sort if they wanted to, and if they wanted cachet, they'd probably scoop up Bose or Sennheiser, a name with some actual weight behind it. It's amazing that HP's series "With Beats Audio" actually cheapens their product.

They doubtless want cachet that resonates with their target market. Ergo Sennheiser probably isn't a great choice.

As for Bose, they probably wouldn't be a bad choice, but they do a lot more than headphones and their market cap is $20B, quite a bit more than the $3B we are being told for Beats.

Re: Apple Said to Be in Talks to Buy Beats for $3.2 Billion

#25
post #9

I cannot figure out any way to reconcile the incredibly poor quality of Beats products with a hopeful future for Apple. Can someone make the argument for why this is a good idea?

Some are speculating that Apple is more interested in the beats music streaming service. I'm not sure I buy that -- doesn't Apple nearly have its own? Even if they don't, surely they've got the foundation set to build one quite effortlessly.

Re: Apple Said to Be in Talks to Buy Beats for $3.2 Billion

#26

So much for Apple's appearance of being a premium brand. Beats products are junk. Until 2012, they were basically white-labeled Monster Cable products.

Yes, it's precisely about appearance. Beats head/earphones are very popular. They were also in some sort of partnership with HP (and perhaps others?) previously --- you can find many HP laptops with Beats Audio. This appears to be a selling point, so combined with the fashionable image of Beats, it makes sense that Apple would want to absorb this brand. Also, most people aren't aware that Beats are junk. Many consume…

Not only HP, but HTC phones, until several months ago.

Re: Apple Said to Be in Talks to Buy Beats for $3.2 Billion

#27
As I see it it's not for the hardware, but for the streaming service and for Jimmy Iovine and his connections/knowledge in the music industry. I don't know how he could fit with Eddy Cue but I think Jimmy Iovine would bring a lot if he was in charge of the music services in iTunes.

Re: Apple Said to Be in Talks to Buy Beats for $3.2 Billion

#28
post #9

I cannot figure out any way to reconcile the incredibly poor quality of Beats products with a hopeful future for Apple. Can someone make the argument for why this is a good idea?

They are over marketed a bit and over priced, sure, but just as much as Bose, B&O and a lot of other premium sound brands. How do they objectively have "incredibly poor quality"? Do you have a link that support they have really poor sound quality or bad build quality or horrible customer satisfaction rate?

“In terms of sound performance, they are among the worst you can buy,” says Tyll Hertsens, editor in chief of InnerFidelity.com, a site for audiophiles. “They are absolutely, extraordinarily bad.”

http://www.nytimes.com/2011/11/20/business/beats-headphones-...

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