It's not about it being aluminum.
It's about the processes that are needed to make a Mac or an iDevice that makes it worthy of notice.
PS: Also, the Brits invented Aluminum, so they have the right to call it what they want.
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Apple to Announce Beats Acquisition This Week, Drops Price to $3 Billion
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It's not about it being aluminum.
It's about the processes that are needed to make a Mac or an iDevice that makes it worthy of notice.
PS: Also, the Brits invented Aluminum, so they have the right to call it what they want.
I wonder how this will effect the HP computer relationship. Don't most hp computers have "beats" sound system in them?
What about buying credence with a market sector?
I don't see many people ruminating about whether Apple may be putting more energy into going after the minority marketplace, and see Beats as a path to doing that. If Dre and Iovine can sell overpriced, not very good headphones to a TON of the "urban youth" segment, I think there's good reason to believe that Apple might think they can help boost other Apple sales into that market. That alone could be worth WELL more than $3 Billion. Demographic trends alone make this idea worth considering.
Think about it this way. Let's say Apple thinks they can sell $1000 worth of overall Apple products to 10,000,000 more people the Beats guys can "turn on" to Apple (and of course combine Beats' products with that). Apple's profit margins are what, around 37 percent give or take? I'm sure Beats' are in the same territory, if not significantly greater. That's $3.7 Billion in net profit right there. Can Doctor Dre hype $1000 in Apple/Beats products to 10,000,000 people? Or $500 in Apple/Beats products to 20,000,000 people? I think that's pretty reasonable, actually. In addition to this, Iovine and Dre's content business acumen could perhaps help Apple grow their content businesses (music, TV and movies, plus apps of course). This deal could actually be somewhat of a no-brainer for Apple, in this light.
Additionally, what I would HOPE to see is a refinement in the quality of Beats products, thanks to the resources of Apple behind the brand. If that happens, this could end up being a win-win-win. Out of left field yes, but maybe not as crazy as it looks at first glance...
I don't see many people ruminating about whether Apple may be putting more energy into going after the minority marketplace, and see Beats as a path to doing that. If Dre and Iovine can sell overpriced, not very good headphones to a TON of the "urban youth" segment, I think there's good reason to believe that Apple might think they can help boost other Apple sales into that market. That alone could be worth WELL more than $3 Billion. Demographic trends alone make this idea worth considering.
Think about it this way. Let's say Apple thinks they can sell $1000 worth of overall Apple products to 10,000,000 more people the Beats guys can "turn on" to Apple (and of course combine Beats' products with that). Apple's profit margins are what, around 37 percent give or take? I'm sure Beats' are in the same territory, if not significantly greater. That's $3.7 Billion in net profit right there. Can Doctor Dre hype $1000 in Apple/Beats products to 10,000,000 people? Or $500 in Apple/Beats products to 20,000,000 people? I think that's pretty reasonable, actually. In addition to this, Iovine and Dre's content business acumen could perhaps help Apple grow their content businesses (music, TV and movies, plus apps of course). This deal could actually be somewhat of a no-brainer for Apple, in this light.
Additionally, what I would HOPE to see is a refinement in the quality of Beats products, thanks to the resources of Apple behind the brand. If that happens, this could end up being a win-win-win. Out of left field yes, but maybe not as crazy as it looks at first glance...
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Personally, I'm uncomfortable with the deal because I've heard that Beats makes crappy headphones, and I've never even heard of anything else Beats does.
I buy Apple because it's quality and it *lasts*. I bought an iBook G4 as my first Mac and it was spiffy and fast until I accidentally tripped over the pre-Magsafe power cord for the 20th time 7 years later and broke the charging circuitry on the mainboard. I bought a pair of Sennheiser HD580s almost 12 years ago and have occasionally replaced parts throughout the years, and basically live in those headphones. They changed my relationship with music and games.
If Apple was going to buy a headphone company, I'd want them to buy Sennheiser. If they were going to buy a music streaming company I'd want them to buy Spotify. Hell, I'd like for them to buy T-Mobile or something and start the first data-only cellphone company that doesn't suck.
But, Beats? Why? It doesn't make sense. The brand is basically well-known for making ****. They might be *much* better now, but if I want to spend $400 on headphones I'll buy a new pair of Sennheisersbut I don't have to, because my current Sennheisers are "Apple-strong." I'd feel better about burning money than buying a pair of Beats headphones. I really don't get it. I've been reading about this potential deal for weeks and I still don't get it. It doesn't make financial sense, it doesn't make brand sense, it doesn't make product sense, it doesn't make business sense. It's just so utterly WEIRD.
I buy Apple because it's quality and it *lasts*. I bought an iBook G4 as my first Mac and it was spiffy and fast until I accidentally tripped over the pre-Magsafe power cord for the 20th time 7 years later and broke the charging circuitry on the mainboard. I bought a pair of Sennheiser HD580s almost 12 years ago and have occasionally replaced parts throughout the years, and basically live in those headphones. They changed my relationship with music and games.
If Apple was going to buy a headphone company, I'd want them to buy Sennheiser. If they were going to buy a music streaming company I'd want them to buy Spotify. Hell, I'd like for them to buy T-Mobile or something and start the first data-only cellphone company that doesn't suck.
But, Beats? Why? It doesn't make sense. The brand is basically well-known for making ****. They might be *much* better now, but if I want to spend $400 on headphones I'll buy a new pair of Sennheisersbut I don't have to, because my current Sennheisers are "Apple-strong." I'd feel better about burning money than buying a pair of Beats headphones. I really don't get it. I've been reading about this potential deal for weeks and I still don't get it. It doesn't make financial sense, it doesn't make brand sense, it doesn't make product sense, it doesn't make business sense. It's just so utterly WEIRD.
They should just buy Spotify. Even if it cost them 5x the amount, it would be a good deal. Beats for $3B is a joke. Firstly, you can't buy cool. Secondly, even if you could, Spotify would give Apple more than 5x the amount of cool that Beats would.
The only part of Beats that is profitable is the headphone department. Who cares about that? Apple could have done a thousand other products, but they have always insisted that they are very careful about what they spend their limited time doing. Beats is profitable, but that profit is a drop in the ocean compared to Apple's profit.
Dre hasn't really gone down well since news of this broke. Either he learns to **** or he's going to become a liability for Apple. Don't know Iovine, but if he's worth so much money just offer it to him directly and get him to resign.
I do not understand the fascination with Beats Audio. Just like I do not understand the fascination with AT&T and DirecTV -- Neither one makes any sense. Now if Apple would consider acquiring BOSE that would be something that would make sense, just the same if they would acquire DirecTV - Just Saying...
You do realize BOSE is just as bad as beats correct?
I am currently only reading things about Apple I don't like:
- Apple to put ARM processors in MacBook Pro's
- Apple buying Beats for 3.2 billion
- Apple to introduce a supposed 'health' watch
I am starting to think Apple wil be a sinking ship soon if all these things will happen.
Really hope I am wrong though. But for me Apple is loosing its appeal.
- Apple to put ARM processors in MacBook Pro's
- Apple buying Beats for 3.2 billion
- Apple to introduce a supposed 'health' watch
I am starting to think Apple wil be a sinking ship soon if all these things will happen.
Really hope I am wrong though. But for me Apple is loosing its appeal.
Better no style than bad style
Remember when Steve Jobs said that Microsoft wasn't a bad company but just without style?
I would rather a company have little sense of style than proceed with tackiness.
Cook must either have little sense of style or not care about it as much as a focus to see only Apple's financials and manage its corporate structure.
This reminds me a little of the last time a CEO took over after Jobs -- John Scully, who was also a corporate manager type.
Remember when Steve Jobs said that Microsoft wasn't a bad company but just without style?
I would rather a company have little sense of style than proceed with tackiness.
Cook must either have little sense of style or not care about it as much as a focus to see only Apple's financials and manage its corporate structure.
This reminds me a little of the last time a CEO took over after Jobs -- John Scully, who was also a corporate manager type.
But at least Bose targets the same audience Apple is after.
Unless Apple changes strategy and will want to become a second Sony.
The latter is now rated junk at wall street though.
So many brilliant business people on this thread
I can't wait to see what amazing business's these brilliant people end up delivering of their own.
I can't wait to see what amazing business's these brilliant people end up delivering of their own.
1) Great, good for it. Apple should learn from it and rewrite iTunes, picking up the good ideas and adding more of their own. (Kinda like they've been doing with other apps.) They coud do that for a few million, not billions.
2) Perhaps someone somewhere has suggested that Beats Music = rap, but that's not an ongoing theme in the discussions here, so you're countering an argument that's not been made.
3) Yes they are smarter, but smart people do dumb things sometimes. Or mabye often; there are several books on Amazon with "why smart people do stupid things" in the title.
4) That is a genuine accomplishment but it's a marketing accomplishment. The problem with trendy or fashionable is that trends and fashions change, often quickly. Beats are selling like gangbusters (ha) right now, but just as quickly as they became the cool headphones to own that could change. Ironically getting bought could even help precipitate that change by affecting their image.
5a) Yep, most people don't care what audiophiles think, but that doesn't change the fact thats Beats's success is not built on a solid foundation. See 4).
5b) As others have said many people are familiar with the good brands of headphones. If you're not familiar with them that only says something about where you're coming from (you don't own Beats headphones by any chance do you?), not about those brands.
5c) Apple is very good at making money, but it really does seem that they actually do care more than most any other large company about making really good products. So your implication that Apple doesn't care about how crap Beats headphone are as long as they make a ton of money is dubious.
1. iTunes in both app and desktop form has been getting steadily worse.
2. That's the same as convincing arrogant Windows/Android gobsh***s that you don't have to "buy" all your music from Apple.
3. True. But their "quality" reputation that goes a long way to justify premium pricing is forever tarnished now.
4. They screwed over Monster using wealth gained in the music industry and contract manipulation.
5. Brands YOU haven't heard of for reasons YOU can't comprehend.
They didn't "make" (i.e. make a profit of) $1.3 billion, they sold $1.3 billion. Their profit would be a fraction of that.
Imagine what the Apple creative and marketing folks could do with any entity. Or wait, if they're not able to do it with their own (does iRadio count?) why would they be able to do it with Beats?
The 'players' are going to do what after Apple lays $750+ million on them? My guess is they'll hang around for a while, as required by the contract, and then go play.
I did it ironic that you say this. Because for almost a decade THE icon of the company Apple were the white earbuds which sound-wise could only be underbid by two tin cans stripped to a wire.
Oh and by the way- the iPod was always known to have sub-standard sound quality under audiophiles.
There once was a time when Apple was a cult.
A time when an announcement would make people camp out in front of Apple stores for days.
A time when everytime the Messiah fa##ed it was mayor news.
A time when competing companies feared what Apple might come up with next.
Those times are gone.
In these days Apple is just another techno-giant like Google or MicroSoft.
Maybe a bit better, maybe just a bit better at marketing.
For me it all seems like a futil attempt to bring back those old days.
A time when an announcement would make people camp out in front of Apple stores for days.
A time when everytime the Messiah fa##ed it was mayor news.
A time when competing companies feared what Apple might come up with next.
Those times are gone.
In these days Apple is just another techno-giant like Google or MicroSoft.
Maybe a bit better, maybe just a bit better at marketing.
For me it all seems like a futil attempt to bring back those old days.
Name your favorite headphones and you probably named some headphones that aren't nearly as bassy lol.
To those who are complaining that $200 million is a lot of money: Yes, it is, but to Apple, $200 million is barely anything.
Sure, that's only, give or take 100,000 nicely upgraded 27" iMacs or 350,000 iPhones, hardly worth mentioning…..
Speakers and headphones.
Great news.
Apple sells all these music devices but don't sell speakers or quality headphones.
Why not have a lineup of quality speakers?
Brilliant and they get Dr. Dre and millions of his fans.
Next Apple TV & iWatch to tie it all together with the expected home automation setup.
Great news.
Apple sells all these music devices but don't sell speakers or quality headphones.
Why not have a lineup of quality speakers?
Brilliant and they get Dr. Dre and millions of his fans.
Next Apple TV & iWatch to tie it all together with the expected home automation setup.
I don't get it... Apple sells beats under the beats brand and then what? I thought Tim and Phil always preached that Apple is about doing the right/best thing for customers. Remember when Jobs said "we don't ship junk." Well....