Apple's Purchase of Beats May Not Be Finalized Until Next Week

[HiRez]

Iovine being head of music could make a huge difference in negotiating these contracts, he's as much of an insider as you can get and knows everyone in the industry.

Now my question is who are they going to pay off *cough* hire to be the movie and television guy/girl to get that business greased? Apple VP J.J. Abrams, anyone?

 

[Nuvi]

Still waiting to see why Apple is making this acquisition. I have not been impressed with Beats products to date. I wonder if there is something they have in their pipeline...

Yes, they are stockpiling it with yet another round of sub-par products.

 

[randyj]

If you were a kid that had $150 and saving $50 a year would you buy some headphone for $3?
So the kid is actually Apple with 150 Billion.
Don't know why everyone is hating on this deal. Apple has so much cash, and if Beats has killer deals with record companies that then pass onto Apple as new owners, then this is a good thing.

 

[MH01]

If you were a kid that had $150 and saving $50 a year would you buy some headphone for $3?
So the kid is actually Apple with 150 Billion.
Don't know why everyone is hating on this deal. Apple has so much cash, and if Beats has killer deals with record companies that then pass onto Apple as new owners, then this is a good thing.

Given the kid makes $50 in a whole year, 6% is a lot to blow on headphones

Too many of these small purchases and he will have to dig into his $150!

 

[mrwonkers]

Dumb Move

What a colossal waste of money, clutching at straws Apple. New Blood @ Apple needed - Visionary needed apply now.

 

[MH01]

Ahhh there's the daily Beats article. Been waiting since the daily iPhone 6 mockup article. Now I can sleep soundly.

Alas the daily Angela is getting hired articles dropped off .... Gutted!

 

[mr.bee]

Beats probably shouldn't have blabbed all about it if they wanted to get it done.

And Steve Jobs/Katie Cotton would never have allowed any leaks of this. Had any leaks occurred, the deal would be off.

It's a strategy to put more pressure on Apple. Also beats will be valued more if rumors are that it's going to be purchased.

just aggressive m&a strategy....nothing special.

 

[H2SO4]

They own 70% of the high end market and over 35% of the total market. They are not a niche headphone maker. They are the dominant headphone maker. And just to reiterate for the thousandth time, apple sells tons of devices with headphone jacks.

Funny how anecdotal evidence can skew peoples perception badly. I mean mine BTW.
I've yet to see more than, and I'm being serious, 2% of the people I come into contact with wearing Beats.
Also expensive doesn't mean High End. I've only sample beats in shops but they are never in 'High End'/specialist shops. I'd consider B&W, Grado and Sennheiser etc as High End. Not Beats. That is not to say by the way that they don't produce a sound that people don't like. I love bass heavy music, (real fast and full range bass, not that boomy one note bass younguns seem to covet), though the Beats didn't sound any better than the Philips items that I currently use.

One thing I remember when I was younger was being in a shop that soild Hi End gear. I use to love to go in there and browse as I couldn't afford the Ruark speakers I wanted or the Mitchell Gyrodeck I fell in love with, (only had two items on vinyl), the POAT1 and T2 power amps and that's only part of what caught my eye.
Anyways, across came the attendant.
'Good afternoon sir, how may I help you?'
Hi I'm after a good graphic equaliser.
A cold icy wind blew through the shop in Dolby Digital. When he came to his senses, he proceeded to school me in why I shouldn't use an equaliser because it muddied the sound and I diodn't hear it how the composer intended me to hear it.
I told him that nor did I listen to it in any of the places that it was recorded or composed.
He went silent.

 

[Mercifull]

I find it amusing the amount of hate on Beats here... Has this forum merged with HeadFi or something? Some audiophiles really get my goat with their outlandish claims about what they can hear, they think they can tell the difference between $200 cables and traditional speaker wire. Spoiler: even a coathanger will send the signal to a speaker as good as Monster cables to the human ear.

I'll ignore the stupid comments suggesting that Beats headphones only cost $5 to make because that's simply not true. They are probably in the region of $20-30 to make. But even then that doesn't take into account the money they need to claw back from marketing, design and R&D.

Like it or not the research and development by Beats has concluded that their target audience likes the heavy bass and coloured sound produced by their equalisers and that they like the bold designs. Beats headphones are flying off the shelves leaving decent quality Sony, Sennheiser and Shures gathering dust. Their R&D has paid off to the tune of $1.5bn a year turnover.

I work for a radio station and we'd never use Beats headphones in the studio for many of the reasons already given in this thread. We tend to use Sennheiser, AKG and AudioTechnica headphones but that's because we are only interested in sound not whether they look "cool" on your head or neck.

You're lying to yourself if you think that the Sennheiser range is as "cool" as Beats... except maybe the Momentum over-ears *drool*.

Someone joked and said they were $300 scarfs and that's probably not too far from the truth. Yes you can pick up some HD202s for about $20 and they will be a lot more accurate than any Beats but they are still acceptable to listen through, I just wouldn't use them myself.

Beats headphones are fashion headphones not producer headphones, I'm fine with that, and they are a good match for Apple.

 

[Tech198]

Neat logo.

 

[viktormadarasz]

I find it amusing the amount of hate on Beats here... Has this forum merged with HeadFi or something? Some audiophiles really get my goat with their outlandish claims about what they can hear, they think they can tell the difference between $200 cables and traditional speaker wire. Spoiler: even a coathanger will send the signal to a speaker as good as Monster cables to the human ear.

I'll ignore the stupid comments suggesting that Beats headphones only cost $5 to make because that's simply not true. They are probably in the region of $20-30 to make. But even then that doesn't take into account the money they need to claw back from marketing, design and R&D.

Like it or not the research and development by Beats has concluded that their target audience likes the heavy bass and coloured sound produced by their equalisers and that they like the bold designs. Beats headphones are flying off the shelves leaving decent quality Sony, Sennheiser and Shures gathering dust. Their R&D has paid off to the tune of $1.5bn a year turnover.

I work for a radio station and we'd never use Beats headphones in the studio for many of the reasons already given in this thread. We tend to use Sennheiser, AKG and AudioTechnica headphones but that's because we are only interested in sound not whether they look "cool" on your head or neck.

You're lying to yourself if you think that the Sennheiser range is as "cool" as Beats... except maybe the Momentum over-ears *drool*.

Someone joked and said they were $300 scarfs and that's probably not too far from the truth. Yes you can pick up some HD202s for about $20 and they will be a lot more accurate than any Beats but they are still acceptable to listen through, I just wouldn't use them myself.

Beats headphones are fashion headphones not producer headphones, I'm fine with that, and they are a good match for Apple.

What do you think of Bowers&Wilkins P7 and Bang & Olufsen H6? as a person who is into the sound staff

I cant decide btw those two .. What I know Id not buy Beats ( all around the same money 300ish)

Viktor

 

[lk400]

Beats probably shouldn't have blabbed all about it if they wanted to get it done.

And Steve Jobs/Katie Cotton would never have allowed any leaks of this. Had any leaks occurred, the deal would be off.

You do realise there are teams of lawyers, accountants, bankers working on both sides of a deal like this for a long time prior to it being made public. A lot of work goes in to making this happen, and a lot of people at all levels have to do that work. Thats many potential leaks, and not even the mighty steve jobs could control that. And do you really think that a multi billion deal that they obviously think is going to benefit their business and woudl have invested millions into already in negotiation and planning would be called off because a rumor breaks?

 

[chrisrosemusic1]

I agree with You. I tried Beats one , I was not impressed at all...Seems like an overpriced piece of plastics sold with a ,,Big Name".

I could have been more delighted Apple teaming up with other brands if not even making a move as an acquisition, brands which proved way more in design, quality and performance than Beats themselves. I think of brands like Bang&Olufsen , Bowers&Wilkins ...but Im sure the list could go on and there are brands 10x the quality and design than those Beats plastics.

Im not a hater, though Hip Hop or Dre is not my style, but again its the product itself which does not meet my expectations.

Viktor

They are woeful. Everything is in the low end frequencies which make the kick and bass boom and most fashion mugs take this as a sign of good quality. It's not. Not at all. Hate them. Wouldn't spend £50 on a pair, let-a-lone £150. Most overpriced junk there is. Don't even look good IMO.

 

[Mercifull]

I found this leaked mockup... seems legit? Apple sticking with the fruity/vegie theme?

 

[lk400]

This is a colossal waste of cash. Headphones that cost $5 to make being sold for hundreds. Sorry but this company has no real value to it.

No audiophile thinks Beats "headphones" are worth the high price. A $30 pair of Sony's are better. All hype with cute packaging.

As an Apple shareholder you are just watching Cook burn money.

Huffpo:

You are right with one thing, most of the self-awarded "audiophile" community hate beats, in the same way any member of a sub-culture hates it when their thing is made mainstream. But even that audiophile community generally accepts that (with some exceptions such as the solo) many of the Beats models are quite good, just over priced for what they are. But thats the case for many products with a strong brand element. In fact as I'm sure you know Apple has been attacked for this very thing for decades.

Not all headphones should sound like studio monitors, and even the audiophiles would usually have a set of flat, neutral analytic cans, as well as something a bit more colored and fun. Beats fit that latter category, and that is what most people prefer - listening to music on overly analytical cans can be very boring. Whether their color suits your listening tastes is a very personal decision, but please, with the exception of maybe the solos, there arent $30 sonys which sound better.

And you are kidding yourself if you think they cost $5 to make. Sure they likely have higher margins than other non-celebrity headphones, but posting on an Apple forum, i dont think we can be too critical of high margins. And if they DID cost $5, as an Apple shareholder I would be extremely happy to watch Cook buy a business with a 99% profit margin on its products!!!!!

 

[chrisrosemusic1]

I find it amusing the amount of hate on Beats here... Has this forum merged with HeadFi or something? Some audiophiles really get my goat with their outlandish claims about what they can hear, they think they can tell the difference between $200 cables and traditional speaker wire. Spoiler: even a coathanger will send the signal to a speaker as good as Monster cables to the human ear.

I'll ignore the stupid comments suggesting that Beats headphones only cost $5 to make because that's simply not true. They are probably in the region of $20-30 to make. But even then that doesn't take into account the money they need to claw back from marketing, design and R&D.

Like it or not the research and development by Beats has concluded that their target audience likes the heavy bass and coloured sound produced by their equalisers and that they like the bold designs. Beats headphones are flying off the shelves leaving decent quality Sony, Sennheiser and Shures gathering dust. Their R&D has paid off to the tune of $1.5bn a year turnover.

I work for a radio station and we'd never use Beats headphones in the studio for many of the reasons already given in this thread. We tend to use Sennheiser, AKG and AudioTechnica headphones but that's because we are only interested in sound not whether they look "cool" on your head or neck.

You're lying to yourself if you think that the Sennheiser range is as "cool" as Beats... except maybe the Momentum over-ears *drool*.

Someone joked and said they were $300 scarfs and that's probably not too far from the truth. Yes you can pick up some HD202s for about $20 and they will be a lot more accurate than any Beats but they are still acceptable to listen through, I just wouldn't use them myself.

Beats headphones are fashion headphones not producer headphones, I'm fine with that, and they are a good match for Apple.

Funny you mention AKG. As a DJ and engineer they are my favourite headphones to work with. For their price they deliver an amazingly accurate response and reproduction, and are light weight and comfortable. Props that you use them at your radio station too. More people need to buy them

 

[lk400]

I find it amusing the amount of hate on Beats here... Has this forum merged with HeadFi or something? Some audiophiles really get my goat with their outlandish claims about what they can hear, they think they can tell the difference between $200 cables and traditional speaker wire. Spoiler: even a coathanger will send the signal to a speaker as good as Monster cables to the human ear.

I'll ignore the stupid comments suggesting that Beats headphones only cost $5 to make because that's simply not true. They are probably in the region of $20-30 to make. But even then that doesn't take into account the money they need to claw back from marketing, design and R&D.

Like it or not the research and development by Beats has concluded that their target audience likes the heavy bass and coloured sound produced by their equalisers and that they like the bold designs. Beats headphones are flying off the shelves leaving decent quality Sony, Sennheiser and Shures gathering dust. Their R&D has paid off to the tune of $1.5bn a year turnover.

I work for a radio station and we'd never use Beats headphones in the studio for many of the reasons already given in this thread. We tend to use Sennheiser, AKG and AudioTechnica headphones but that's because we are only interested in sound not whether they look "cool" on your head or neck.

You're lying to yourself if you think that the Sennheiser range is as "cool" as Beats... except maybe the Momentum over-ears *drool*.

Someone joked and said they were $300 scarfs and that's probably not too far from the truth. Yes you can pick up some HD202s for about $20 and they will be a lot more accurate than any Beats but they are still acceptable to listen through, I just wouldn't use them myself.

Beats headphones are fashion headphones not producer headphones, I'm fine with that, and they are a good match for Apple.

I agree with most of what you have said, and can tell you spend some time on HeadFi too. I dont use Beats myself, and have been a big fan of AT (which may say something about my listening style), but even the latest beats models, I've found from trying out, are less over the top on the bass and actually are quite a pleasure to listen to. As many have said, for the same price you can get technically better sounding headphones, or you can get the equivalent of say $300 beats for somewhere in the $200 range, but these new models are not bad at all.

 

[Michael Scrip]

Dre should just stick to acting. Oh wait, that's Ice Cube. Forget it.

Ice-T could kick both their asses

And he's 56!

 

[lk400]

Yes huffpo is where people go to get business news.

It is pretty hard to find solid investments that will give a 10% roi for billions of dollars. When you have a massive amount of cash you thank your lucky stars if you can invest in a successful money making business with that kind of return. Risk free investment with potential large upside? This is all good news for apple stockholders.

Anyone who thinks this is burning money for shareholders probably should not be invested in the stock market as it is unlikely they can afford to do so.

This real is a no brainer deal for apple, yet I continue to be amused by the people who apparently don't even meet that requisite talking about what a bad deal it is without any factual basis.

Let us put it in the simplest terms. Say you got 150k to invest (come on guys stop laughing it could happen). Now you have an opportunity to spend 3k on a business that will earn you between $200-$400 a year. I don't know if you have checked the interest rates at banks lately but you are going to get only a tenth of that. In fact a one year cd is less than a quarter of one percent or 1/40th the return you would get by investing your 3k into this mini beats.

See how it is a no brainer? Leave out the fact apple has sold hundreds of millions of headphone jacks or that the foundation for a streaming music service is there. It is a no brainer as a financial investment even if they were selling Tupperware.

Now you are going to wring your hands about this 3k investment when you have to find a way to earn money with the other 147k? The reality is the opportunity to buy successful businesses at a reasonable price is virtually non existent. It is not like there are billion dollar companies with great net earnings that want to be purchased for modest multiples just laying around out there.

Nah man - its a bad investment because I personally dont like the products this superbly profitable business makes. There are products I like better, but arent as well known. Im posting on a forum for a company that has very strong brand image which means I do, whether I admit it or not, care about brand image. And the brand image of this other company doesnt fit well with me. Therefore its a bad business decision.

But in all seriousness, your simple explanation is spot on. For a company like apple, people would usually expect some great synergies in such a big acquisition, and not just looking at return on investment... and for this one, i think those synergies are obvious. Maybe people have a problem with buying into a mature very consumer oriented business and not capturing some exciting startup as tech company. I dont know. But that doesnt negate that beats and apple could, if these rumors were true, work pretty well together.

 

[gohn]

I miss the days when Apple had the word "Computer" as part of their company name (and their mission). Apple seems to have lost their way, seeking the almighty quick buck instead of the tried-but-true and seemingly faithful customer base.

Fortunately, they can't rename themselves Apple Music, since someone already beat them to it. (Hurray for hindsight!)

Just to disclose that I read this site often and post very rarely and currently the only Apple product in use in my home is a seven year old Airport Extreme, however I just couldn’t leave this one alone, sorry.

I may be entirely wrong here, although as you can imagine I don’t think that I am, but was it not down to the reliance and dependence on the tried-but-true and seemingly faithful customer base which almost lead Apple Computers to slip from obscurity into obsolescence prior to their re-invention around the turn of the century.

I should also note that I have never tried a set of Beats headphones and to be honest they look to be entirely style over substance overpriced tat.

 

[Supermule]

It takes time to count the money ($3.2 billion)...

 

[ka-spot]

bite the beats...

...no new 3d mockups? the last are too old (from yesterday)!

 

[ludalukeerb]

Wow wow wow....one thing everyone has looked past....what's Dre's offcial title going to be?? Jimmy I get...

Dr Dre, VP of Rap Relations?

 

[nick42983]

Dre would be a great addition to Apple's health team. Being Doctor and all..

Perfect time to finally get the Detox album bundled with Apple's Healthbook app..

 

[mrheeley]

What most forget...

I think what most of the neigh sayers are forgetting is that this deal extends far beyond headphones.

Beats is a manufacturer of goods with brand recognition... Apple is a manufacturer of goods with brand recognition.. it fits. I realize there are better sounding headphones on the market, but that doesn't mean that Apple audio engineers can't or won't take a look at the internals once the deal is done. The electronics can always be tweaked... they want the BRAND.

Beats also manufactures internal audio components which have been in HP laptops for a long time... anyone care to guess where they'll go next? Unless I miss my guess, internal beats audio hardware will go into MacBooks, iPhones, iPads, iPods. You take a popular brand, connect it with another popular brand and that is a financial win.

Finally they have a small foothold in the streaming music industry. Beats music already is what iTunes/iTunes radio should be. A subscription based music service where you don't have to pay per song, rather pay a monthly subscription for the music you love.

Financial analysts have speculated that Beats will continue to run as a separate company. My gut tells me that will be true with the exception of the music service. Apple would be wise to rebrand it as Apple Beats and replace iTunes Radio. Just my $0.02.