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Will Beats ruin the future of iPhone?

D

DBZmusicboy01

macrumors 65816
Original poster
Sep 30, 2011
1,262
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What do you think was the real reason Apple bough Beats for?

And is Tim Cook mad at Dre for telling people he will be a billionaire ?

I guess it's to appeal to more people.
 
For starters, "Beats Acquisition Boosting Apple's 'Coolness' Factor Among Young Consumers."

And then already having a popular brand that is established, being able to push more for "Apple Introduces Lightning Cable MFi Specifications for Headphones"
 
boast said:
For starters, "Beats Acquisition Boosting Apple's 'Coolness' Factor Among Young Consumers."

And then already having a popular brand that is established, being able to push more for "Apple Introduces Lightning Cable MFi Specifications for Headphones"
Click to expand...

Yeah that's a business reason for the deal, but don't you think they paid way too much?
 
DBZmusicboy01 said:
What do you think was the real reason Apple bough Beats for?



And is Tim Cook mad at Dre for telling people he will be a billionaire ?



I guess it's to appeal to more people.
Click to expand...



I'm glad beats got bought by Apple. I know now the quality and durability will improve. Apple puts out a quality product. The problem with beats before was their headphones didn't last long before breaking. A friend bought a pair and within a year they quit working. If Tim Cook was really that upset that Dre was telling people that then the deal would have never been done. He knows what a big deal it is to have beats headphones.

There's a younger base of people it appeals to and Apple knows it. Did they overpay? Yes. Apple can afford it and thats a huge payout for Dre. It would be really hard to blow through a billion dollars , let alone 300 billion.
 
dishfan82 said:
I'm glad beats got bought by Apple. I know now the quality and durability will improve. Apple puts out a quality product. The problem with beats before was their headphones didn't last long before breaking. A friend bought a pair and within a year they quit working. If Tim Cook was really that upset that Dre was telling people that then the deal would have never been done. He knows what a big deal it is to have beats headphones.

There's a younger base of people it appeals to and Apple knows it. Did they overpay? Yes. Apple can afford it and thats a huge payout for Dre. It would be really hard to blow through a billion dollars , let alone 300 billion.
Click to expand...

Apple bundled headphones are rubbish.
 
dishfan82 said:
I'm glad beats got bought by Apple. I know now the quality and durability will improve. Apple puts out a quality product. The problem with beats before was their headphones didn't last long before breaking.
Click to expand...

I haven't seen Apple's earbuds break, but the sound quality isn't there. It makes me skeptical that they would really do much to improve upon that. Apple's retail site has carried some okay third party headphones in the past.
 
zedzded said:
Yeah that's a business reason for the deal, but don't you think they paid way too much?
Click to expand...

Not at all. Even leaving aside whatever long term plans Apple may have, the streaming service and the potential boost to their image in certain demographics Beats is still worth it based on their headphone business. In 2013 they had estimated revenue north of $1 Billion and held somewhere around 60% of the high end headphone market. It's a private company so we don't know profit margins but they're likely to be pretty high as they're, effectively, a fashion brand rather than a consumer electronics one.

To put this in context in the previous quarter Apple made a profit around $10 billion. Beats has basically cost them about a month's worth of profit, hardly a huge risk for the company.
 
It won't ruin the iPhone, but it may not turn out to be money well spent. I have no idea and we'll have to wait and see whether its was a good move by apple, but I don't see how this could ruin the iPhone.
 
I think this will tremendously help their headphones they include with the iPhone. The "beats" brand is huge for whatever reason and will only bring in more $$ for Apple.
 
I don't see any reason for Tim cook to be or have been mad at Dre for saying he is a billionaire... If anything I think it would help both companies and get their product name out there some more... Kind of like an endorsement.
 
dishfan82 said:
I'm glad beats got bought by Apple. I know now the quality and durability will improve. Apple puts out a quality product. The problem with beats before was their headphones didn't last long before breaking. A friend bought a pair and within a year they quit working. If Tim Cook was really that upset that Dre was telling people that then the deal would have never been done. He knows what a big deal it is to have beats headphones.

There's a younger base of people it appeals to and Apple knows it. Did they overpay? Yes. Apple can afford it and thats a huge payout for Dre. It would be really hard to blow through a billion dollars , let alone 300 billion.
Click to expand...

Pretty sure Apple didn't pay 300 billion.
 
DBZmusicboy01 said:
What do you think was the real reason Apple bough Beats for?
Click to expand...

Beats is still going to be Beats. Apple isn't going to start bundling headphones. Beats has a subscription music service that is pretty highly rated. I'm guessing they wanted access to it. I'm glad, because personally I think iTunes Match and radio are pretty horrible. I've been using Google Music for a while now and it's pretty great.
 
They bought a Coolness factor and Did not buy a Business . Its cool to have Beats headphones and Apple have hundreds of those Billion Dollars , so its Pretty ok price for them :)
 
Future of iPhone is in the hands of Apple($100B) not their dog collar purchase ($3B). If Beats doesn't work out, they might kill the brand and for all you know buy another 'cool' and 'youth-appealing' headphones company and turn that around.
 
We'll have to wait and see, I guess. At the moment I believe it wasn't really a strategical move of Apple, but you never know what kind of developments something like this could lead to.
 
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