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Apple in Talks to Acquire Beats Electronics for $3.2 Billion [Updated]

Read through this thread and I still don't understand this. Really. Apple, synonymous with highest end materials, utmost build quality, and innovative design, wants Beats By Dr. Dre?! And as to the streaming service, Apple just launched iTunes Radio EIGHT MONTHS AGO, and already they think it's so doomed that they need to spend BILLIONS to acquire a competitor?? I don't get it. I know Cook's an operations genius and all, but how in the name if all that's holy is this the fabled 10-figure company that's the perfect fit for Apple and it's future?

Someone insightful PLEASE spell this one out for me. Soon. I need to sleep tonight. Thank you.
 
iolinux333 said:
It will eventually be time for me to move on from Apple. It was nice while it lasted. Someone else will step up and take their place eventually. Jolla?
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Well, we are far off from that eventuality... What, you're going to plastic computers/phones from aluminum and glass? The nice thing about Apple is they already have more money than they know what to do with. That means money isn't the driving factor behind their decisions, at least not from what I've heard Tim speak of. They are in business to make money, but they are also making great products which make the money. The Apple name/logo without a product won't make a dime.
 
fullauto said:
Seems like a strange acquisition? One would think Apple could design and produce better hardware and a percentage of the Beats user base would already be linked to itunes.. Patents? Sell itunes products via android?
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Beats already owns the marketplace. Audio nerds can list all their favorites with better quality but all of them together only equate to about half of what beats is doing.

It is a potential way in for apple into an industry where they can improve quality of a company who already dominates the market. It would likely be much, much, much more expensive for apple to try and make any meaningful headway into that same market. Plus beats has coveted demos, which don't always directly overlap with apple.
 
CL4W said:
Replies in this thread are beyond hilarious. So many keyboard warriors think they know whats best for Apple...*laughs*

If they do buy BEATS, they will be buying its intellectual property, that's where the money is.
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Bingo. I glad someone here gets it. It wouldn't surprise me at all if the deal goes thought that Apple shutters or sells off the headphone phones part of the portfolio.
 
The more I think about it, this could've been smart. Maybe they're interested in Beats for their upcoming music subscription service.

Also, the EarPods were surprisingly good, so maybe they could put their money and resources in developing a stylish, good sounding pair of premium headphones and use the beats brand to market them. Like, they don't have to continue selling current beats headphones. I don't think that's what this purchase is all about.
 
Kabeyun said:
Apple just launched iTunes Radio EIGHT MONTHS AGO, and already they think it's so doomed that they need to spend BILLIONS to acquire a competitor??
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Beats (the streaming service) isn't a competitor for iTunes Radio.

iTunes Radio is a free service, like Pandora, with commercials. You don't get to choose what to listen to, you just say "I like 80s music" and get a bunch of things in a certain genre.

Beats is a paid service that gives its subscribers access to a huge music library. It's like paying $9 a month to listen to anything you want on iTunes with no restrictions. Completely different contracts than the ones Apple has for iTunes, and extremely valuable.
 
iolinux333 said:
So many other companies have gone from making the best of the best to making over priced junk. Sometimes the end up being more profitable. That's what happens when the bean counters are in charge.

Examples:

Abercrombie & Fitch
Mercedes
Hewlett Packard
Ford
Remington
Winchester
Colt
BC Rich Guitars
Coca Cola
Craftsman
Black and Decker




All of them are still in business. The masses think all their junk is fabulous and they still pay all the bean counters that run them fabulous salaries and bonuses.

It will eventually be time for me to move on from Apple. It was nice while it lasted. Someone else will step up and take their place eventually. Jolla?
Click to expand...

Mercedes did have a slump but they are back in a big way with their new redesigned cars. The new S-Class is simply amazing as is the C-Class.
 
Kabeyun said:
Read through this thread and I still don't understand this. Really. Apple, synonymous with highest end materials, utmost build quality, and innovative design, wants Beats By Dr. Dre?! And as to the streaming service, Apple just launched iTunes Radio EIGHT MONTHS AGO, and already they think it's so doomed that they need to spend BILLIONS to acquire a competitor?? I don't get it. I know Cook's an operations genius and all, but how in the name if all that's holy is this the fabled 10-figure company that's the perfect fit for Apple and it's future?

Someone insightful PLEASE spell this one out for me. Soon. I need to sleep tonight. Thank you.
Click to expand...

Apple doesn't have an on-demand streaming service and there's no evidence at this point that a launch was imminent. On-demand streaming is eating into the a la carte model, and that deterioration is accelerating. You get instant access to working technology and take out a competitor/potential competitor at the same time so you can focus all your energy on cultivating your main strength, the 800 million folks with iTunes accounts, and focus quickly and entirely on taking on the competition in the relatively new (and long-term lucrative) streaming space.
 
I'll believe when it's official. I can't believe Tim Cook would make a multi-billion acquisition for a headphone company.
 
The idea that Apple could rid themselves of the most annoying fanboys by buying out Beats is awesome. I hope they do it! :D
 
Benjamins said:
Sounds like Beats is trying to sell itself, so they created this rumor.

Beats worth no where close to 1 billion.
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I will bet you a billion dollars you are wrong. They will have high margin sales of over 1.5 billion dollars this year. They are worth way more than a billion dollars.

Pm for my paypal to send me my one billion dollars
 
moeafg said:
Why? Beats is terrible at audio. If it was Bose/Bowers & Wilkins then I wouldn't be so surprised.
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I put Bose in the same boat as beats. On their own, they are not terrible IMO jist way too over hyped and over priced with inferior sound to products that cost much less.
 
While I don't like beats, it is a pretty solid brand, and their marketing and product placement is pretty amazing. They really took over the headphone market recently.

If Apple can increase the quality and create some better designs I think it will be a good acquisition.
 
CL4W said:
Replies in this thread are beyond hilarious. So many keyboard warriors think they know whats best for Apple...*laughs*

If they do buy BEATS, they will be buying its intellectual property, that's where the money is.
Click to expand...

What intellectual property would that be?
 
From last year. Poor HTC... they would have made bank on that investment if this Apple deal goes through.

HTC said today it has agreed to sell back its remaining stake in Beats for $265 million; it paid around $300 million for a majority stake in 2011. Iovine told the paper that the latest transactions reflect the company's "significant growth prospects," while Carlyle's Sandra Horbach said her firm is "confident that Beats will continue to drive innovation and growth in the premium audio accessory market." (HITS Daily Double)
Click to expand...
 
SirLance99 said:
Mercedes did have a slump but they are back in a big way with their new redesigned cars. The new S-Class is simply amazing as is the C-Class.
Click to expand...

I'll go ahead and agree with that. Since they excised Chrysler Disease they're making some good cars again. But from 1997-2007 they were a complete diasaster. In the same vein, perhaps after Apple manages to excise Cook, Apple can make some good stuff again. Though maybe not. A bad CEO can kill a great company beyond the point of being saveable. Rest in peace Commodore.
 
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