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For the last time the deal isn't about the headphones, it's about the STREAMING MUSIC SERVICE.

iTunes is in danger of losing the online music game to Spotify if they don't offer a superior streaming music service within a year's time.

Purchasing Beats is crucial to iTunes's future, and will presumably help Apple fast-track a robust and well curated streaming music service.

Exactly...But people, are stupid and enjoy losing their poop over every rumor.

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Steve Jobs wouldn't allow this. Ever.

Jobs would hate your comment.
 
Only one of so many asinine comments in this thread. Daimler did nothing with Chrysler but suck them dry and dumping them to Cerberus. The only good thing was giving them some tech for the LX cars.

Chrapsler NEVER made good cars. Even when Iacocca was pandering to the US government in the 80s. Their cars were crap. Bottom of the quality scales.

Fast forward to today. Same story - Chrysler, Dodge, Jeep, and Ram bring up the rear in just about every dependability survey.
12c2f593e902b8db6cf63cb81ccf78b2x.jpg


Consumer's Reports paints a similar picture, as does True Delta.

Chrapsler should have died in the 80's and definitely in 2008. They have made utter garbage for way too long.
 
The people who buy Beats don't think they are poor quality. They have the same feeling about Beats as you do for Apple. :) Beats sells a boatload of headphones.
Yep I own a beats pill and it is awesome. I use it for music and conference calls/FaceTime calls
 
Why is everyone so surprised?

Apple as a company provides phones for the masses.

Dr Dre as a company provides headphones for the masses.

Dr Dre are very popular. Popular does not necessarily equal quality.
 
Beats

If Apple buys Beats Audio and incorporate it in their products, I think they should not incorporate the "heavy base" equalizer setting by default. It would ruin music, and there will be a segment of society (audiophiles) who will purposely avoid Apple products. These people are actually very important because they are the group that probably buys the most music (on iTunes) and appreciate the audio quality on a deeper level than ordinary people. This translates to lower profit on iTunes.

Spending 3.2 billion on one piece of software (an equalizer) is kinda pointless if Apple already makes speakers and headphones for its notebooks and mobile devices. They can simply make up a new marketing term: iBass, and just crank up the bass equalizer settings, and they already have a legitimate Beats Audio competitor. Samsung will probably do just that without spending any money except marketing dollars.

If Beats Audio IS put in by default in iPhones in the future with no way to turn it off, then this may be a legitimate problem that may drive certain music lovers away from Apple devices. When I got the HTC One, I actually could care less about Beats Audio... I wanted the large front facing stereo speakers. Buyers of the new M8 HTC One probably could care less about the missing Beats Audio logo too (ask them). There are a lot of bad press about Beats Audio, for anyone who googles "is Beats Audio headphones good?". So I don't know if Apple is actually researching before buying.

However, if Apple is unable to build a streaming music service (software programmers) or unable to find a good designer for headsets (to compete with Ive?), then buying Beats Audio is just that... buying a designer (Beats Audio don't even manufacture, but outsource I think to Foxconn). Could Beats Audio be holding audio patents that Apple wants? Their logo is mostly marketing, so probably Apple wants to buy a marketing logo to sell more headphones to hip hop and rap music buyers?
 
I think the headphones/Beats audio integration with iDevices are still a significant part of it, not necessarily based on their quality, but how they will help attract new customers who desire the Beats image, while keeping others from jumping ship to Android/Galaxy (in addition to the larger screen of the next iPhone).

I honestly dont think the headphones have much to do with it. It's about expanding into other ecosystems.
 
For the last time the deal isn't about the headphones, it's about the STREAMING MUSIC SERVICE.

iTunes is in danger of losing the online music game to Spotify if they don't offer a superior streaming music service within a year's time.

Purchasing Beats is crucial to iTunes's future, and will presumably help Apple fast-track a robust and well curated streaming music service.

You are right on this. These services are the future.
 
If Apple buys Beats Audio and incorporate it in their products, I think they should not incorporate the "heavy base" equalizer setting by default. It would ruin music, and there will be a segment of society (audiophiles) who will purposely avoid Apple products. These people are actually very important because they are the group that probably buys the most music (on iTunes) and appreciate the audio quality on a deeper level than ordinary people. This translates to lower profit on iTunes.

Spending 3.2 billion on one piece of software (an equalizer) is kinda pointless if Apple already makes speakers and headphones for its notebooks and mobile devices. They can simply make up a new marketing term: iBass, and just crank up the bass equalizer settings, and they already have a legitimate Beats Audio competitor. Samsung will probably do just that without spending any money except marketing dollars.

If Beats Audio IS put in by default in iPhones in the future with no way to turn it off, then this may be a legitimate problem that may drive certain music lovers away from Apple devices. When I got the HTC One, I actually could care less about Beats Audio... I wanted the large front facing stereo speakers. Buyers of the new M8 HTC One probably could care less about the missing Beats Audio logo too (ask them). There are a lot of bad press about Beats Audio, for anyone who googles "is Beats Audio headphones good?". So I don't know if Apple is actually researching before buying.

However, if Apple is unable to build a streaming music service (software programmers) or unable to find a good designer for headsets (to compete with Ive?), then buying Beats Audio is just that... buying a designer (Beats Audio don't even manufacture, but outsource I think to Foxconn). Could Beats Audio be holding audio patents that Apple wants? Their logo is mostly marketing, so probably Apple wants to buy a marketing logo to sell more headphones to hip hop and rap music buyers?
It's amazing how you figured it all out and you know more than the guys at Apple.
 
A companies value is not what it will cost. Whatsapp was valued at 1.5 billion when Facebook bought it for 19 billion.

That's different.

I showed the market cap of listed companies, i.e., the sum of shares issued by a company. It is basically the value of the company as appraised by the market itself.

It is common, however, that a company offers a large sum of money for other company, in order to buy it quickly. It's the price of opportunity. This premium tend to be lower if the company already values a lot. When Microsoft made a proposal to buy Yahoo!, it offered a premium of 62% over the market price of the shares. It's nowhere near the premium Facebook offered for Whatsapp.

Anyway, I don't think Apple is being very wise here. But who knows...
 
What happens when the headphones (if they even continue) are no longer called Beats and sport the Apple logo instead? It seems like shunning anything "corporate" is the thing to do (even though in reality Beats is exactly that) and the anti-Apple sentiment in particular seems to be the new normal.

The Apple logo is the most beloved and worshiped on earth. Perhaps they won't can the Beats name, who knows?
 
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?

I'm not saying it's worth it. It's been rumored that Apple wants to expand into Andtoid...This allows them to do so overnight.
 
Apple products are overpriced too, yet they sell like crazy.

I would say most of accessories are overpriced and many times when they keep around older hardware(Like when they were selling the iPad 2 for $399 or the current horribly outdated $1000 TB display as an example).

However, when comparing Apples to Apples type of hardware, you would be hard pressed to find something like a rMBP, nMP or an iMac in the PC world for any cheaper.
 
"Audiophile" snob detected.

Believe me, I'm a minor league "audiophile snob" at best/worst, depending on your prospective. But there's a big difference between recognizing that a company like B & W has made it's name based on generally excellent, truly high-end audio products, while companies like Bose and Beats are companies that have made their named based on marketing generally mediocre products.

The biggest problem I have with Bose and Beats is that you can absolutely find not just equal, but significantly better options from other companies at much better price points. They are low quality products sold at far too high of a price point. They're simply a terrible value in my mind. And I could say a whole lot more about Bose and their manipulative marketing over the years, but if you're curious, use a search engine. There's plenty of dirt.

One could certainly argue that B & W products don't necessarily offer a great value oftentimes, and for many people, I would certainly agree. But by no means does that undermine the fact that any way you shake it, the B & W products tend to be excellent in quality. And ultimately, it's simply a different business model that generates the higher price. There's a much smaller market for high end audio gear, yet R & D costs tend to be higher to develop it, manufacturing costs are significantly higher as well, and material costs are higher. For these companies to stay in business and continue making products for a niche market, they have to make a healthy profit. Again, I would never argue that they're an excellent value for all people, but for those that demand the highest of quality audio reproduction, B & W might actually be among the lower-priced options, and thus a good value.

Not everyone needs high end audio gear, let alone would many people have the room to even keep some of B & Ws speakers over the years. But no one really needs most of Bose's products (I'll fully admit that they do excel in certain areas of the audio world, but as for the speakers and home systems, it all boils down to successfully marketing low-quality crap) nor do they need Beats headphones. Again, there are just too many options out there that are of a higher quality and sold at a much better price.

(The same problems with Bose and Beats are also problems with another popular audio product, Monster Cables. Again, mostly garbage sold at a huge markup for no real good reason. Their guitar/instrument cables have some value however given that they have a lifetime warranty oftentimes and seeing as guitar/instrument cables take a lot more abuse in a live setting, that can come in very, very handy to a lot of people. I still don't use them, but I understand why some do in performance settings.)

If you still think that anything I've said makes me an "audiophile snob," then fine, I'm an "audiophile snob." But to me, it all boils down to a product's quality and value, not how well they employ marketing gimmickry to sell crap products with huge margins.
 
That's different.

I showed the market cap of listed companies, i.e., the sum of shares issued by a company. It is basically the value of the company as appraised by the market itself.

It is common, however, that a company offers a large sum of money for other company, in order to buy it quickly. It's the price of opportunity. This premium tend to be lower if the company already values a lot. When Microsoft made a proposal to buy Yahoo!, it offered a premium of 62% over the market price of the shares. It's nowhere near the premium Facebook offered for Whatsapp.

Anyway, I don't think Apple is being very wise here. But who knows...

I guarantee you Disney cannot be purchased for $120 billion. I'm not saying Beats is worth 3.2 billion, but they won't sell it for less.

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Apple isn't trying to win the streaming music game! They want people to buy high margin hardware.

Spotify and all of the other apps in the App Store make this happen. Period.

I don't agree with you. There's a reason Apple Radio was created. It's not a hobby.
 
I would say most of accessories are overpriced and many times when they keep around older hardware(Like when they were selling the iPad 2 for $399 or the current horribly outdated $1000 TB display as an example).

However, when comparing Apples to Apples type of hardware, you would be hard pressed to find something like a rMBP, nMP or an iMac in the PC world for any cheaper.

You can get the same performance for less money in some cases with other brands. Apple has the highest profit margins in the industry. They sell expensive products that sell very well. Beats sells somewhat expensive products that sell well. This deal is all about dollars and cents for Apple, people are reading far too much into it, IMO.
 
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.
And you nailed it. They're super popular and honestly I expected them to be an Apple product to begin with.
 
And if this actually goes down, I expect Beats Headphones will be on it's own island and have no more association with Apple than they do now. I don't think Apple cares at all about that part.

I think this boils down to taking another streaming competitor off the market before they launch their own, bringing in some of the talent that differentiates Beats streaming service to improve their own, but perhaps more than anything...

They're absorbing a streaming service run by Jimmy Iovine who last I heard had a little something to do with running Interscope, Geffen and A & M...no big deal...coming from the music industry side of it, you hear a lot of love and hate for Iovine and it all goes back a long ways for some people, but the guy has continued to find a way to stay somewhat relevant through a lot of years and a tremendous amount of change in the music industry. Like him or not, if you're trying to offer up a great music service to the public, he's not a bad guy to have in your corner.
 
Yeah, we got billions to spend on Beats to bring in those tweens that still don't have an Apple product, but we ain't got no time nor no money to spend on licensing Rosetta for the diehard Apple users who think Snow Leopard was Apple's shining moment and it's been a downhill slide since then (Lion! Mountain Lion! Mavericks! Safari tabs! QuickTime's codecs! we can't afford to hire software testers, so we ask our user base to be beta testers -- for free!).

Okay, back to converting all my AVI-.mov QuickTime movies into .mp4 (thanks a lot for that surprise, Apple!).
 
People may not like Bose's acoustics, but their noise canceling is pretty excellent. This whole idea got me thinking of the iPhone using noise canceling to hear better while on the phone in a noisy place. That would be nice.

Again, I understand this is pretty off topic.

Yea with all the trash at Bose, their noise cancelling headphones are good and they are comfortable. I think most sites will rank the noise cancelling Bose headphones near the top.

If would be really awesome if Apple made use of the noise cancelling technology.
 
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