Beats Co-Founders Dr. Dre and Jimmy Iovine Expected to Take on Senior Roles at Apple Following Acquisition

[nviz22]

Eh not like HTC was making much money from their Beats deal. If I remember correctly, it was only for the HTC ONE (m7). I think the license has expired. HTC milked it for what it was worth.

If that's the case, good for them because it would be a sinking ship right now. Well, HTC finally has something going for them design wise. They have the "Android Apple build" meaning that they have a premium device with style. They can't market well, but that's been their problem for years. I have had many HTC devices and liked most of them. I am only with Samsung since they have the most unique features and biggest Android premium device on the market. If Apple can release a nice big iPhone/iPhablet, I could consider moving on up, but that's a different store for a different day.

 

[AppleScruff1]

What is Cook thinking with the Beats deal?

 

[Trapezoid]

If you looked at Beats demographics I'm sure you'd find the majority of people who use their headphones are teenagers. On the list of things Apple needs to focus on worrying about whether teenagers think Apple is cool shouldn't even make it on the list.

Why not? I dont understand. Why wouldn't Apple want to capture every demographic they can?

 

[krravi]

You know Apple is doing something right when "What school gave Dr. Dre his doctorate???" is the go to argument for why this is a bad deal.

Oh yes Apple is so right all the time. What's next? Will.I.Am iPhone covers?

 

[Viper2005]

Is Dr. Drek a physician or does he hold a PhD?

He's actually a shaman who lives in Alterac Valley.

 

[KeegM480]

If you were to take this on a serious note, beats audio in a MacBook/iOS Device or the new thunderbolt display would be pretty cool.. sucks to be HTC though

 

[newagemac]

I think I figured it out. Apple needed some bigger headphones to put all the new wearable health sensors into. The Beats headphones turned out to be a great choice!

 

[Rogifan]

Why not? I dont understand. Why wouldn't Apple want to capture every demographic they can?

I think they have bigger issues to worry about and there are better companies to acquire.

 

[SkippyThorson]

Apple please, you cannot associate yourself with this company! You are not ghetto style, you are high quality with the best hardware, moving in with "beats" or Dre or whoever the other guy is,, is the worst move you can make.

Popeye's chicken would be better.

I was wondering how long it would take someone to throw this discussion into a dangerous place.

 

[rgraf77]

If you looked at Beats demographics I'm sure you'd find the majority of people who use their headphones are teenagers. On the list of things Apple needs to focus on worrying about whether teenagers think Apple is cool shouldn't even make it on the list.

You didn't say "teenagers" you said "urban youth". You just didn't come out and say what you really wanted to say. Yes, the main demographics of Beats is teenagers, not just a specific group of teenagers as you put it. Sorry to bust your bubble, but a lot of different types people happen to like Apple products.

 

[Trapezoid]

Oh yes Apple is so right all the time. What's next? Will.I.Am iPhone covers?

Wait what? Who said Apple is right all the time?

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I think they have bigger issues to worry about and there are better companies to acquire.

Well yeah but you can say that about every acquisition by any company ever.

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If that's the case, good for them because it would be a sinking ship right now. Well, HTC finally has something going for them design wise. They have the "Android Apple build" meaning that they have a premium device with style. They can't market well, but that's been their problem for years. I have had many HTC devices and liked most of them. I am only with Samsung since they have the most unique features and biggest Android premium device on the market. If Apple can release a nice big iPhone/iPhablet, I could consider moving on up, but that's a different store for a different day.

Yep. Of all the Android manufacturers I like HTC. The M8 is gorgeous.

 

[3N16MA]

My brain is still trying to process all these Apple buying Beats articles and not because of Dre/Iovine, hip-hop (I actually like the genre), or the price tag (not bad considering their revenue/profits/growth).

It has more to do with Apple actually buying a CE company that already has a well established brand and how exactly is Beats going to work within Apple. Everything Apple sells is Apple branded and promotes the Apple brand.

It's also a little telling that if Apple needs to Beats to enter the subscription music service quickly, they have really been dragging their feet.

Of course none of this is official or even real at this point so all our comments could be for nothing.

 

[rgraf77]

I was wondering how long it would take someone to throw this discussion into a dangerous place.

The Macrumors posters couldn't contain themselves after being bombarded with Beats articles all day. They finally had to come out with their real true feelings of why they are mad.

 

[PeteyV]

Does anyone also see that they might have bought Beats to also get into the car industry? Beats are used in Chrysler cars. I can see apple trying to get into the auto user interface business.

 

[Trapezoid]

My brain is still trying to process all these Apple buying Beats articles and not because of Dre/Iovine, hip-hop (I actually like the genre), or the price tag (not bad considering their revenue/profits/growth).

It has more to do with Apple actually buying a CE company that already has a well established brand and how exactly is Beats going to work within Apple. Everything Apple sells is Apple branded and promotes the Apple brand.

It's also a little telling that if Apple needs to Beats to enter the subscription music service quickly, they have really been dragging their feet.

Of course none of this is official or even real at this point so all our comments could be for nothing.

And of course, we have zero details on the deal, including whether or not its even a go. So anything and everything in this thread is speculation.

 

[Rogifan]

You didn't say "teenagers" you said "urban youth". You just didn't come out and say what you really wanted to say. Yes, the main demographics of Beats is teenagers, not just a specific group of teenagers as you put it. Sorry to bust your bubble, but a lot of different types people happen to like Apple products.

Ok so if "a lot of different types people happen to like Apple products" what does Apple need Beats for? And are the teens who use Beats now still going to like them once they've been acquired by Apple?

 

[richman555]

Is it possible the Beats brand will be used for wearables?

I know they currently do not offer such devices... but the brand could help drive it.

 

[Reds622]

"From an acquisition point of view, we have done 24 in 18 months. That shows that we're on the prowl, I suppose you could say. We look for companies that have great people and great technology and that fit culturally, and we don't have a rule that says we can't spend a lot, or whatever."

Those are Tim Cook's own words. I have not yet heard as to how Beats fits into that statement. This seems to me, at least, to be a company with just OK technology, just an OK fit, and 1 insider executive that probably everyone can agree brings something real to the table here in Iovine, at least I think he does.

 

[SusanK]

You didn't say "teenagers" you said "urban youth". You just didn't come out and say what you really wanted to say. Yes, the main demographics of Beats is teenagers, not just a specific group of teenagers as you put it. Sorry to bust your bubble, but a lot of different types people happen to like Apple products.

Remember the figure in silhouette dancing in the iPod TV spots? That wasn't Opie Taylor

 

[Trapezoid]

"From an acquisition point of view, we have done 24 in 18 months. That shows that we're on the prowl, I suppose you could say. We look for companies that have great people and great technology and that fit culturally, and we don't have a rule that says we can't spend a lot, or whatever."

Those are Tim Cook's own words. I have not yet heard as to how Beats fits into that statement. This seems to me, at least, to be a company with just OK technology, just an OK fit, and 1 insider executive that probably everyone can agree brings something real to the table here in Iovine, at least I think he does.

Can you explain how you don't see beats in that?

"we've been on the prowl"
"We look for companies that have great people (Iovine) and great technology (it sells even if everyone thinks it sucks) and fits culturally (get on a 6 train in NYC, teenagers to grandmothers are using beats headphones) and we don't have a rule that says we can't spend a lot, or whatever (3.2 BN)

 

[Rogifan]

Remember the figure in silhouette dancing in the iPod TV spots? That wasn't Opie Taylor

I'm still waiting to hear what Scott Forstall's vision was for Apple and why Apple is doomed because Cook fired him.

 

[Reds622]

Can you explain how you don't see beats in that?

"we've been on the prowl"
"We look for companies that have great people (Iovine) and great technology (it sells even if everyone thinks it sucks) and fits culturally (get on a 6 train in NYC, teenagers to grandmothers are using beats headphones) and we don't have a rule that says we can't spend a lot, or whatever (3.2 BN)

I always thought great tech meant technology that Apple couldn't or has not been able to develop themselves.. Obviously you are reading that to mean we'll buy a company that has OK tech if the other factors significantly outweigh the marginal technology. That I think would be a different direction for Apple, as I cannot really remember an acquisition that would fit that criteria.

Isn't it also strange how this seems to coincide with Apples big acquisition from Burberry to lead Retail? Does Apple really want to turn into that Tech Giant who acts like a Tech Giant? I always thought it would be in Apples best interest to be the Tech Giant who acts like a smaller tech company. I think it would be a big mistake to have a big footprint and act like you have a big footprint. Have a big footprint, but stay the company that just focuses on making "great products," if you know what I mean.. My minds a bit wobbly at the moment.

 

[3N16MA]

Can you explain how you don't see beats in that?

"we've been on the prowl"
"We look for companies that have great people (Iovine) and great technology (it sells even if everyone thinks it sucks) and fits culturally (get on a 6 train in NYC, teenagers to grandmothers are using beats headphones) and we don't have a rule that says we can't spend a lot, or whatever (3.2 BN)

Beats does not have great technology. Don't get great marketing mixed up with great technology. Beats has done an amazing job marketing their product but the technology behind it is not special.

When Cook said "culturally" I thought he meant within Apple's culture and companies that share a similar one.

Iovine might actually be an asset considering he has been pushing subscription music before it started to become as big as it is. He also is well connected and pretty successful when he ventures into something.

 

[Trapezoid]

I always thought great tech meant technology that Apple couldn't or has not been able to develop themselves.. Obviously you are reading that to mean we'll buy a company that has OK tech if the other factors significantly outweigh the marginal technology. That I think would be a different direction for Apple, as I cannot really remember an acquisition that would fit that criteria.

Isn't it also strange how this seems to coincide with Apples big acquisition from Burberry to lead Retail? Does Apple really want to turn into that Tech Giant who acts like a Tech Giant? I always thought it would be in Apples best interest to be the Tech Giant who acts like a smaller tech company. I think it would be a big mistake to have a big footprint and act like you have a big footprint. Have a big footprint, but stay the company that just focuses on making "great products," if you know what I mean.. My minds a bit wobbly at the moment.

I get what you're saying but what disqualifies Beats from being a great product? They have 1BN in sales, own almost 50% of the market, and are growing.

I get that a lot of people on MacRumors don't like Beats headphones, but the numbers speak for themselves.

Beats is huge right now. I see no problem with Apple acquiring a company that's actually moving up.

google bought Nest and Motorola. I don't think there was this much criticism for those. Apple is the company people love to hate.

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Beats does not have great technology. Don't get great marketing mixed up with great technology. Beats has done an amazing job marketing their product but the technology behind it is not special.

When Cook said "culturally" I thought he meant within Apple's culture and companies that share a similar one.

Iovine might actually be an asset considering he has been pushing subscription music before it started to become as big as it is. He also is well connected and pretty successful when he ventures into something.

Why does beat not have great technology?

I didn't take him to mean within Apple's culture, because he would have said that if he meant that.

Iovine IS an asset, regardless of who hates that a 45+ year old still wears a cap.

 

[Mak47]

Ugh, I'm still not convince this is the right decision for Apple to pursue.

Edit : I might have to eat my word, but iovine seems like an intelligent person in the music business,
I've just watched this http://allthingsd.com/20130306/jimmy-iovine-explains-his-60-million-music-plan/
and feels iovine is like jobs in the music industry.

I now understand the vision here, thanks for posting that link.

I work in the music business and everything Iovine says is absolutely right--at least as far as the streaming/subscription service is concerned.

This isn't about having a massive catalog and paying less money for more access. It's about your music service being smart and in tune with your personal tastes. It also creates a platform where artists can interact with fans (and vice versa) which brings an entirely new dimension to music as a whole.

I've been playing with the Beats service, it has it's flaws (streaming quality is horrifyingly bad) but the curation aspect is miles apart from anybody else. It just needs something more to tie it all together.

If Apple can pull of this acquisition--and doesn't kill the vision this guy lays out--this will replace iTunes as we know it.

People want interaction, they want social sharing, they want curation and they also want control and access to a huge catalog--they're not exclusive of one another--this can give people all of that.

What's interesting here is how much this sounds like what Steve Jobs wanted Ping to be--but without a streaming/subscription model it couldn't happen.