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Or Beats could be a fad and people could stop buying their overpriced and underperforming headphones.

Very crude analysis. Seriously, I totally agree with you about the headphones, but just like Apple's overpriced and underperforming machines, the Beats are a class/status kinda thing.

I have no clue what Apple is or may do with the company, or what they get out of it other than more money (because let's face it, Apple isn't going to do anything that doesn't make them richer) but at least we shouldn't profess to know what's better for them, or claim that another company's product is "X"

"X" being what Apple has been called for over a decade.
 
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I'm interested in knowing how they value these companies, namely Beats, to come up with the price

Look at the revenues of recently sold comparable companies. Place a value on any IP and try to figure in unusual growth.

Unless someone expects a massive drop in revenue, $3 billion is pretty cheap for beats. Either the major owners want to get out of the business pretty bad, or everything is not what it seems with the 1.3 billion in 2013 revenue (like the net is -300 million).

Really it is all guess work and often fails fabulously. Look at Google & Motorola Mobility. The only way that deal looks god is if you place a ridiculous value on old standards essential patents. Those patents were not making Motorola much money before and they aren't making Google any more now. For an even better example, think of Facebook and Whatsapp. How do you value Whatsapp at $19 billion? You don't. Not if your Facebook, not if your anyone. Zuckerberg seems to have bought it for reach into a market with no money. Was the purchase philanthropic?

Compared to those deals, Apple would be crazy not to buy Beats for $3 billion.

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How can they do this after that video leaked? Such an embarrassment.

For who? Dr. Dre? It's not embarrassing to Apple. The $200 million might just be a "fine" for the leak.
 
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Very crude analysis. Seriously, I totally agree with you about the headphones, but just like Apple's overpriced and underperforming machines it's a class status.

I have no clue what Apple is or may do with the company, or what they get out of it other than more money (because let's face it, Apple isn't going to do anything that doesn't make them richer) but at least we shouldn't profess to know what's better for them, or claim that another company's product is "X"

"X" being what Apple has been called for over a decade.
Which Apple machines are overpriced and under performing?

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I am SO glad that you aren't running Apple.

You'd have them giving rMBPs away for free.

I am sure the many years of experience Tim Cook has trumps anything you could ever come up with on a rumor mill forum.

Ok if not cheaper cloud storage how about instead of $100 for a jump in memory it's only $50. I would take either of those over overpriced headphones.
 
Beats, utter trash.

Where are the people screaming "Steve wouldn't have allowed this!"?
 
Ok if not cheaper cloud storage how about instead of $100 for a jump in memory it's only $50. I would take either of those over overpriced headphones.

Now I can agree with that. Take the $3billion and make RAM upgrades and other parts cheaper . . . . . . . I give up most Apple services for that.

I don't have to configure ROWS UPON ROWS of mac hardware anymore, but when I did we had to order the RAM and HDDs/SSDs etc. separately. The install them and wipe old storage and install OSX on new ones for hundreds of systems at a time because it was cheaper for the company or university to have us do it then pay the overpriced Apple fees.

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Beats, utter trash.

Where are the people screaming "Steve wouldn't have allowed this!"?

They are remembering Steve partnering with U2 and the Beetles and HP.
 
so disappointing.

apple - now you've lost your way.

Yes, it's a shame Tim Cook and Apple weren't being advised by mega business owner Scott911 about how to run the biggest company in the world. They should just pack it up and quit now because someone on a message board knows how to run a business better.

Why does everyone assume an announcement on this will be at WWDC? It's a developers conference not a shareholders meeting.

At least this thread is good for pointing out just how many music snobs there are on this forum. :\
 
You do realize BOSE is just as bad as beats correct?

I believe Bose targets the same buyers as Apple. To me, when I think of Beats, the image that pops into my mind is "bad gangster", "Rap" or worse, "Jimmy Iovine" --- Are these the images that Apple wants associated with itself? I personally don't think so.
 
I believe Bose targets the same buyers as Apple. To me, when I think of Beats, the image that pops into my mind is "bad gangster", "Rap" or worse, "Jimmy Iovine" --- Are these the images that Apple wants associated with itself? I personally don't think so.

The question we all want to know is... Are YOU a "real" doctor?
 
I believe Bose targets the same buyers as Apple. To me, when I think of Beats, the image that pops into my mind is "bad gangster", "Rap" or worse, "Jimmy Iovine" --- Are these the images that Apple wants associated with itself? I personally don't think so.

You need to get out more Doc! :D

Apple doesn't want any one image associated with itself unless it has pockets full of cash.
 

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I can't wait to see what amazing business's these brilliant people end up delivering of their own.

Ha, ^^^this. Especially love the "they shoulda just bought Spotify" people as if that thought never crossed the minds of Apple execs. Hopefully they're reading this thread to take business advice from all these "experts."
 
You need to get out more Doc! :D

Apple doesn't want any one image associated with itself unless it has pockets full of cash.

Each of those images come across as meh, or neutral. Was there supposed to be some sort of glamour or something else that I didnt quite understand?
 
I am SO glad that you aren't running Apple.

You'd have them giving rMBPs away for free.

I am sure the many years of experience Tim Cook has trumps anything you could ever come up with on a rumor mill forum.



Seconded!

Most people's complaints are about how they aren't good headphones. The one person giving any real facts is being ignored, and everyone is forgetting that Apple and Beats are a match made in heaven if you only consider their headphones overpriced fashion statements crap.




p.s. I hope this deal goes through, just so it'll peeve folks off.

I had been waiting for you to chime in on this, to get your perspective.

What I observe are proxy arguments being waged, every bit as much about Dr. Dre as they are about the actual quality of Beats headphones. Frankly, with many of the critics of this deal (in this thread anyway), you could interchange "Andre Young" with "headphones," and the criticisms would be the same.

There will be some, perhaps many, who will vehemently disagree with what I am inferring, but I have eyes, I have perception, and I am being more honest about it than you are.
 
Yes, it's a shame Tim Cook and Apple weren't being advised by mega business owner Scott911 about how to run the biggest company in the world. They should just pack it up and quit now because someone on a message board knows how to run a business better.

Why does everyone assume an announcement on this will be at WWDC? It's a developers conference not a shareholders meeting.

At least this thread is good for pointing out just how many music snobs there are on this forum. :\

And why todd B. do you think tim and apple need you to defend them from others posting their options on an opinion board? Why not just crusade to take down all the message boards?

The list of great big companies making mistakes is a long one.
 
I can dig it.

Beats always remind me of fad chasing college students. Usually the ones that complained about book prices but had no issue buying $200 skullcandy rebrands.

That's why Apple is interested. Beats and Apple are one and the same.

Nah.

Apple produces better product, but Beats are in their wheelhouse.
 
so disappointing.

apple - now you've lost your way.

Care to explain why you believe Apple has lost their way?

The acquisition of a successful company seems quite the opposite. Now, just because you as well as numerous others around here think Beats are overpriced pieces of junk, doesn't mean Apple lost their way with this acquisition. If that is indeed the reasoning behind your vague comment. Obviously Beats does quite well and the ratio of people who like and appreciate their product to those who do not isn't does not likely favor those who think their product is junk.

So again, why is it that you think Apple has suddenly lost their way and I hope it's not because they're working on this and not sticking some ridiculously oversized iPhone in your hand. Explain how this is a mistake as well, since you identified Apple as being another major cooperation that has made a mistake.
 
This is a smart move.

You can hate on beats but they are a good product and more importantly popular.

In 2004 I was lured into Apple by the iPod. At the time I used Windows solely for personal / business. I purchased my first iBook that year, and now mainly use mac hardware and accessories.

Along with headphone sales this deal will drive more customers in the door.

I wonder what will happen with future production of the HP line that and other phones that have beats audio.
 
Don't consider them to be great products based on personal use, or don't like them because big black athletes customize them and wear them during pregame warmups to listen to....GASP....RAP music. :eek: ? Guessing the latter for a lot of commenters here.

The people assuming racism lurks around every corner here are almost as annoying as the actual racists. Believe it or not, there are good reasons to dislike dre that have nothing to do with race, AND good reasons to dislike beats that have both nothing to do with race and nothing to do with dre.
 
I get that due diligence is normal. My WTF was around Apple apparently just starting that now but the acquisition is supposed to be announced yet this week. Seems a bit rushed IMO.

I was on the team for an acquisition recently by my Fortune 500 company. Due diligence goes quickly. It has to. A prolonged audit period impacts company valuations, which can sour the deal.
 
The people assuming racism lurks around every corner here are almost as annoying as the actual racists. Believe it or not, there are good reasons to dislike dre that have nothing to do with race, AND good reasons to dislike beats that have both nothing to do with race and nothing to do with dre.

My comment was based on the sum of the tone of many of the Beats related threads on this site since the story broke a few weeks ago. I'm a 30 year old white male by the way, but I was embarrassed reading the onslaught of hysteria and negativity with all roads seemingly leading back to Beats' association with hip-hop culture, and African-American athletes.

Most people have come across as either nerdy audiophiles who think every mainstream audio brand is "junk", "crap", and "garbage"....or 50+ year old fans of classic rock who despise all things pop and hip-hop and refuse to give any of this a chance.
 
And why todd B. do you think tim and apple need you to defend them from others posting their options on an opinion board? Why not just crusade to take down all the message boards?

The list of great big companies making mistakes is a long one.

I was with you until the last line. This message board is for fun, which may include silly opinions and wild speculation. It's all good.

Of course, in your last line you imply there may be some value in your position. Can't agree with you there.
 
Apple bought Beats for:

1: To help restore their "cool" factor in Music. Something they lost dramatically when they started Ping.

2: A kickstart in Music streaming. aka. the death of music buying individual tracks

3: Acqui-hire of Iovine and Dre to sway TV cable companies to bring iTV to market.

4: They get the content licences for streaming from Beats. They don't if they were to purchase spotify.

5: Beats are a profitable company

All of which is massive #win. In the immediate future, they're paying $3b to purchase a company with $1.7b in revenue last year alone. The deal pays for itself in a matter of 2-3 years most likely, with lots of benefits not yet realized.
 
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