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Beats CEO Jimmy Iovine in Talks to Join Apple as 'Special Adviser'
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Increasingly I'm not not so sure. While universally derided among the audiophile community, Beats headphones are everywhere and seem to sell very well with young people who either don't yet know better or are suckered into the brand and its image.
I've no doubt that given their prices it's an incredibly profitable company. These days it seems like Apple is more concerned with profitability than quality, which is the first stage of decline of any company. I'm not saying Apple is in decline. They still make so many great products, but for a company that built its success on iPods and selling music I'm consistently amazed and dismayed at Apple's lack of concern for audio quality.
Just look at APPL PE ratio: it's at 14 , MSFT is at 14, Facebook is at 71 and Google is at 27. That gives you an indication of what people think future holds for these companies. Apple will follow Microsoft into being an old dying irrelevant giant.
I'm not sure how many times this needs to be repeated...
APPLE IS NOT BUYING BEATS FOR ITS HEADPHONES.
APPLE IS NOT BUYING BEATS FOR ITS HEADPHONES.
APPLE IS NOT BUYING BEATS FOR ITS HEADPHONES.
APPLE IS NOT BUYING BEATS FOR ITS HEADPHONES.
Apple needs a Spotify-killer and Beats has a deal with record labels that Apple evidently wants.
APPLE IS NOT BUYING BEATS FOR ITS HEADPHONES.
APPLE IS NOT BUYING BEATS FOR ITS HEADPHONES.
APPLE IS NOT BUYING BEATS FOR ITS HEADPHONES.
APPLE IS NOT BUYING BEATS FOR ITS HEADPHONES.
Apple needs a Spotify-killer and Beats has a deal with record labels that Apple evidently wants.
I'm not normally one to comment on appearances, but middl-aged men dressing like 19 year-olds (and wearing caps!) is creepy!
...But people don't care and praise Google for buying... Nest, Drone Companies, Military Robot Companies etc etc...
Agreed, remember that Google bought Nest and then immediately had to recall all their smoke detectors for safety reasons.... thats pretty bad... they only have two products.
This is probably about content deals... 3.2 billion is really not that much anymore... Beats is a highly visible company with apparent talent, probably to help with a subscription service. Its in keeping with apple bringing in industry talent like retail and now the music industry, I wouldn't be surprised to see more of this. Not a bad thing.
These deals with the labels rarely (if ever) automatically transfer to new owners in acquisition. Beats will have done an amazing job if they managed to get that common clause stripped out of their agreements with the labels.
If it would have been a crappy head phone company founded by a rock n roll star, nobody would have a problem here at Macrumors. Apple buys all sorts of companies, obviously they might have something Apple wants.
Apple simply wouldn't buy a headphone company. They bought them for their streaming service. I'd bet a large amount of money on it.
Some people are myopic.
This has zero to do with headphones.
With Beats Music Apple has an instant access to an established cross platform, streaming music service.
Meaning they get a piece of Windows, Android, iOS, and OSX and whatever else can access the service.
The industry contracts are already signed so Apple has less drama, or record labels trying to milk that Apple money.
Apple needs a music streaming service or they risk showing up late to a party run by Spotify and Google Music.
The technology maybe. But I'd be very surprised if they acquired the licensing deals as part of the acquisition. The labels weild too much control to allow that to happen.
Edit: I think the only situation where the labels would allow their content to included in the valuation of a deal is if they had a piece of the business. That has happened in the past, but I don't believe they have a stake in the Beats business?
Dear Lord
Oh God, I can see the slogan now for a Dr. Dre iWatch: "Just what the Doctor ordered"
Haven't you heard? They're hiring a bunch of medical-types for the iWatch. Dr. Dre would be perfect
Oh God, I can see the slogan now for a Dr. Dre iWatch: "Just what the Doctor ordered"
I doubt it. Apples headphones are way better than beats IMO. To spend that kind of money it's probably for licensing deals related to the music streaming service. Apple doesn't buy stuff when they know theirs are better. You'll probably see better beats headphones now.
Right. I guess what I was trying to say is that when 'most' companies buy all sorts of random other companies that have little to do with their current product line or purpose (google as an example), people say how 'innovative' they are etc etc. Apple buys (if this was even confirmed) Beats, and people criticize them, ridicule them, etc etc.
But yes, they want the 'extras' beyond the headphones such as the companies that beats has acquired, the IP, the service, the execs.
And who cares about the headphones? They're not the best and they're overpriced. But you know what? People buy them. So many kids out there don't care about audio quality and will take beats style with their 'software audio quality boosting gimmicks' over the competition.
It's not like you're going to use these anyway on your new Pono music player (you'd need some really high end headphones there...)
That marketing is killer. And is important for image. Samsung is huge solely bc of all the money they put into their crazy marketing (ie celebrities). And there are much better and more innovative android phones out there.
But I guess it's the nature of a tech forum.