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

bighype said:
Tim Cook has completely lost it. After all these years of running Apple, post Steve Jobs, he's introduced no new product categories and is spending billions on ****** headphones and streaming service (which he already has and can even match for few million in extra programming).

As much as I believed in Tim Cook, if this deal is true, I'm not going to put much faith in future Apple.

Maybe all those Apple detractors were right… maybe such low AAPL P/E is right.
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Cook has been running the company for three years. You expect him to have created a completely new product line in that short of a timeframe? This is in addition to the 5-10 year roadmap Jobs laid out for Apple.
 
Michael Goff said:
Clearly they did it because they were preparing for the time when Apple got into the business. I hear that's the only reason they do anything.
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It's a little obvious when they rush out half finished products that just happen to include the features in devices Apple is rumored to be about to release. They also schedule the release of it days before Apple is expected to do so.
 
tim cook. r u serious

wtf. beats??!?!?!
do they think apple consumers are all little teenage boys and girls?
 
Everybody in my gym are using wireless headphones, like "Bluedio R OverEar", since every rumor say iPod is dead...
I hope that Apple develop headphones that dispenses ipods.
 
they should buy audeze for 10 mil and have them pump out a low end line of planars, still too expensive for the average apple user, lol... :D
 
AppleScruff1 said:
I'd be willing to bet that Apple sells far more Beats than they do B&W. Only people into audio know B&W, but everyone has heard of Beats and the kids love them. Beats are mediocre sound quality at premium prices. But the young generation loves that heavy bass, even if it is exaggerated and completely inaccurate. Beats are a good fit for EDM and rap. All of this is IMO, of course

So from a business perspective, Beats has a huge following and they probably have big profit margins.
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And that's the reason Apple is going after Beats in addition to increasing the screen size of the next iPhone, to attract the people who are currently wearing Beats headphones connected to a Samsung Galaxy.
 
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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People are buying beats headphones in droves.... they are not buying bose headphones in droves....

device designed for beats have MANY audio profiles.... everything bashing them, bet you never changed them. They're actually pretty decent headphones. I think they are over priced, but they are good.

I think people are missing a few key elements.

Apple speakers suck. (What was that awful box speaker, the hi-fi? FAIL) Those little beats speakers kick some noise....

MacBooks have terrible speakers.... I can seen putting beats into macbooks

I can see beats software in iDevices

I can see IOS in the car packaged with beats car speakers.... (hello automotive segment.... huge opportunity and market)

Apple is also about to launch hi def audio in iTunes

Apple doesn't have a streaming music service like Spotify or Beats (iTunes radio is pretty terrible)

Phone carriers are bundling the beats music service (a ching... subscription revenue)

There are product categories with sound apple could expand the brand into.... sound bar.... (they are rumored to be working a tv concept, right? sound bar that also plugs into ATV software, smart features, etc...)

Everyone is thinking headphones. I doubt apple would spend billions for the logic implied in these threads.

Beats Music baked into ATV and OS-es

There's a lot to play with there... and even head phones.... ear buds.... etc.
 
well apple customers may be little girls and boys and NBA players but apple shareholders should demand better use of capital.
 
So they want to improve audio by purchasing Beats, there are two things wrong with that:

1) Beats makes horrid headphones and audio equipment.
2) It's throwing good money at a bad product.


I though I guess if an NBA player wears Beats they must be awesome... :rolleyes:
 
techwhiz said:
But there are other companies with much better headphones.
Fannie Wang makes a better headphone.
Bose makes a better headphone
Bang & Olufsen makes a better headphone

The only place where Beats makes a good sounding headphone is the Executive series.

The IP on headphones isn't worth 3.2 billion.
Sorry, it just isn't.
It's speaker technology is a tiny package and for active noise cancellation it's DSP. You can get what Beats has in IP for a lot less.

It would be a mistake for Apple to buy them.
HTC just unwound themselves from Beats last year.

http://www.mobileburn.com/22056/news/htc-and-beats-audio-finalize-their-divorce
http://pocketnow.com/2013/09/27/htc-and-beats-divorce

Beats had a valuation of $1.2 Billion in Sept. 2013 when they bought the 25% of themselves back from HTC for $265 million.

No way is Beats worth 3 times that in eight months.
Stupid, stupid, stupid.........
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Yep. This is about bringing a music service to other ecosystems (android, WP). It's not about headphones.
 
iPhone 6 with front facing beats audio speakers....HTC won't know what hit them ;)
 
Zerilos said:
Yep. This is about bringing a music service to other ecosystems (android, WP). It's not about headphones.
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Why would their music streaming service be worth 3.2 billion dollars to apple's shareholders?

what kind of valuation method are they using?
where did they pull the 3.2 billion number?
 
Apple in Talks to Acquire Beats Electronics for $3.2 Billion

This may be about the streaming service but how long is it going to take Apple to spin it into it's own streaming service? A year?

Meanwhile Spotify, Google, and Rdio will continue to grow and offer better options. I mean my god right now on Spotify desktop you can listen to any song on any album for free. You just get ads every few songs.
 
bighype said:
Tim Cook has completely lost it. After all these years of running Apple, post Steve Jobs, he's introduced no new product categories and is spending billions on ****** headphones and streaming service (which he already has and can even match for few million in extra programming).

As much as I believed in Tim Cook, if this deal is true, I'm not going to put much faith in future Apple.

Maybe all those Apple detractors were right… maybe such low AAPL P/E is right.
Click to expand...

Always love the ability of MR commenters to grossly overreact to every new development. I've read so many "Apple is doomed" comments over the years that I've lost track.
 
ezekielrage_99 said:
So they want to improve audio by purchasing Beats, there are two things wrong with that:

1) Beats makes horrid headphones and audio equipment.
2) It's throwing good money at a bad product.


I though I guess if an NBA player wears Beats they must be awesome... :rolleyes:
Click to expand...

Apple wants to make money with Beats. Period. Lots of people who are idolized by today's youth use Beats. Business wise it makes sense.
 
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