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I wasn't a fan of the acquisition but I think it was more about getting Jimmy Iovine and his industry connections than the headphones. The profitable headphones was just a bonus.

I agree, there were less glamorous reasons for the acquisition - I.E. Jimmy. I think they also like something specific about the streaming service that they plan to utilize elsewhere.

As to B&O vs. Beats audio, meh who cares? Apple has never featured/marketed other brands on top of their products. Example: they never used Intel Inside stickers. They would not put a B&O sticker on their products and not Beats either. As far as audio quality, B&O is not an audiophile brand, they are a design brand and the two are not the same. B&O audio quality is adequate, not high end. There are hundreds of reviews over decades to back that up in numerous audio publications.

Remember, Apple hired Tomlinson Holman a few years ago as their audio chief. He is a really smart guy and is more than capable leading a charge to improve Beats audio quality, which I think will happen over time. Holman reportedly has worked on the Apple Watch team researching the sounds blood makes as it flows through arteries. This is the real Apple way, hire smart people and let them invent and improve things.
 
The rule when buying shares (and pretty much anything) is: "Buy low, sell high". Depressed share price = buying opportunity.

"Buying on the way down" is a terrible philosophy for buying equity shares.

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Well when you think about it there are really only 2 main Wintel PC notebook companies, HP and Dell. Sony is gone and people don't buy Alienware unless they are gamers...and that's even fading.

Ummm... Lenovo? Given that I actually did think about it.
 
Beats and B&O have one major thing in common.

Both companies built their success on being able to sell products at over the top prices because they looked good, not because they worked well.

I have to disagree, as I've found that the original B&O products were expensive, but were also very bleeding edge in design and quality. Now, maybe their current stuff doesn't work well, but it's my belief B&O built their success (when they had it) on well made product.

I wish I still had my B&O linear arm turntable from the 80's. :)
 
You're right. It does depend on the price. Since we don't know what that would be your $250 million has no relevance at all. Those supposed better engineers and designers didn't do B&O that much good did they? I'm going to let you in on a little secret. The vast majority of the buying public don't care what's credible to audiophiles. If they did, Beats wouldn't be where they are.


Rebrand the hardware? Tehe.:) B&O has one line of products related to Apple. They have 4 lines that are out of Apple's baliwick. Those 4 lines are basically dead weight. Apple could have developed their own streaming service. Point is, they didn't. They saw what they thought was a better way. Who are we to say they were wrong? Lawsuits, hmmm. Pretty sure Beats is going to see a few more of those. Not because they are Beats, but because Apple owns them.



I'm seeing more than ever. Anecdotes. Useless amirite?


This seems like the crux of your argument. You're an Apple fan, but not a Beats fan. The acquisition isn't even a year old. What were you expecting to see? Whatever it is, that's not how business typically works. I don't think Apple purchased Beats for fans and the shareholders will see value in the increased profits. Although what Apple does rarely has any relation to what AAPL does in the market. Go figure.

Actually, you spent so much time trying to prove my examples wrong that you missed the crux of my argument. My point is, $3B is a lot of money and Apple could have achieved the same or better results far more cheaply. Is it conjecture? Sure it is. Just like you thinking buying Beats was a better decision than buying B&O.

And my arguments are just as valid as yours. Let's look at the facts then shall we?

Could Apple have purchased a better audio company (from a technical standpoint) for less? Check. Could Apple have purchased or developed their own streaming service for less? Google got Songza for $15mm so double Check. Does Apple have a better brand name than Beats? Check. Could Apple have hired a lot of influential music execs for less? Check. Could Apple have a headphone business, streaming service and talented music execs for far less than $3B? Check, check, and check.
 
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When Apple acquired Beats Electronics, several companies that had deals and partnerships with the headphone company were forced to sever their agreements, including Hewlett-Packard (HP).

At the time of the acquisition, HP was selling laptops with "Beats Audio" branded speakers, through a partnership with Beats that was originally established in 2011. HP was only allowed to continue development on products using Beats Audio technologies through the end of 2014, leaving the company without an audio partner and without the "cool" factor Beats brought to the partnership.

Ahead of the end of its partnership with Beats, HP began using its own in-house audio solution and ceased using Beats branding and logos, but it was unclear if that solution was based on Beats audio technology, as suggested by PCWorld.Though there may have been some remaining ties to Beats in HP products, HP today signaled its readiness to move on from the Beats brand by inking a deal with a new audio partner -- Bang & Olufsen.

HP will use Bang & Olufsen audio technology in its PCs, tablets, and other accessories, with "custom tuned" audio for different PC models. Beginning this spring, HP PCs with Bang & Olufsen branding will start shipping to consumers. Like it did with its Beats partnership, HP will add Bang & Olufsen stickers and logos to the PCs, highlighting the new audio technology. CNET shared HP's thoughts on the new partnership.Even as HP moves on to Bang & Olufsen, the company is permitted to continue to sell its remaining stock of Beats-branded laptops through the end of 2015, so Bang & Olufsen-branded HP products may sit on store shelves beside those with Beats Audio technology.

Article Link: HP Partnership With Apple's Beats Officially Ends as HP Moves on to Bang & Olufsen

I love beats. Hopefully Apple puts beats in everything. The base is phenomenal.
 
Ask 100 12 year old kids if any of them have enough money to buy anything in an Apple store and I'd be hard-pressed to believe that more than 5 would say yes. :)

Sure, when you put it that way. But let's talk about real world. There are people right here on MR who have spent $500 on an iPad for their 4 year old. So tell me, how do think so many kids age 12-15 are walking around wearing $300 Beats headphones? Oh here's a thought, maybe their parents paid for them. Oh there goes your argument. :p
 
yeah. i would rather apple paired with bo instead of beats. i don't just find bo to be better quality but i also think beats are very very tacky with a very specific demographic that i really can't relate to.

good job HP
 
Beats = overpriced audio gear for kids

B&O = overpriced AV gear for old people

#sorrynotsorry
 
Oh shucks! I never even knew HP was in bed with Beats :(
Not that it matters, because both suck <delete gratuitous homoerotic imagery>.
 
Guys, B&O may appear to have an image that more appeals to you, but they're really not that much different from Beats or Bose.
 
HP has some strong brand marketing...

I just noticed this evening that all the PC laptops on the desk of the newsreaders on BBC News are all HP laptops.

I'd probably buy an HP if it had better looking laptops. I can't remember a solid lineup which matches Dell Precision, Lenovo Thinkpad and the Macbook Pro. The last three are, in my opinion, the only workstation-class laptop makers, each one with their pros and cons.

HP is very good designing desktop workstations, though!
 
Actually, you spent so much time trying to prove my examples wrong that you missed the crux of my argument. My point is, $3B is a lot of money and Apple could have achieved the same or better results far more cheaply. Is it conjecture? Sure it is. Just like you thinking buying Beats was a better decision than buying B&O.

No offense, but it took no time at all to prove your example wrong. As you said it's all conjecture. Your point about $3B being a lot of money is true. Apple achieving same or better for less is back into the realm of conjecture. Apple could have just as likely achieved worse for less money; just like they did with GTAT.

And my arguments are just as valid as yours. Let's look at the facts then shall we?

Not sure what you think facts are, but nothing you said below qualifies as one. Below you have a lot of supposition. The far more accurate answer to every question you asked below is maybe, not check. You should really replace those affirmative 'checks' with 'I guess it could be true since I just made it up maybes'. Unless, that is, you have actual facts that you'd like to present in rebuttal.

Could Apple have purchased a better audio company (from a technical standpoint) for less? Check. Could Apple have purchased or developed their own streaming service for less? Google got Songza for $15mm so double Check. Does Apple have a better brand name than Beats? Check. Could Apple have hired a lot of influential music execs for less? Check. Could Apple have a headphone business, streaming service and talented music execs for far less than $3B? Check, check, and check.

Specificity (me) vs what if generalities (you). You and I are addressing two different things. I'm talking about the realities of B&O. You're just making up stuff. You're right I do think buying Beats is a smarter decision than buying B&O. At least I based my assertion on actual information. Your entire premise is based on the idea that Apple paid too much and could have gotten equal or better for less. Yet you provided no reason other than you think they could.:confused: Could Beats eventually turn out to be a bad deal? Maybe. Could it also be great? Again, maybe. Can that answer be determined in less than a year of ownership? Highly doubtful. $3B is a lot. Apples seems to think they are getting a lot in return. IMO, of course.
 
No one is going to look at a B&O product and say, "you know what, i'm not going to buy this because HP laptops use them"

People will however look at a HP laptop equipped with B&O as added value.

B&O in an HP does not devalue B&O

Lay down with dogs,
Get up with fleas.

HP is built to a price, if that BOM doesn't include top notch audio components, then it will reflect poorly on B&O. Things that reflect poorly help to devalue brand equity.
 
HP just got an upgrade. Very good move by them.

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Beats is to fidelity what McDonald's is to cuisine. Only with poorer value.

Ha ha ha. Great quote .

I was more thinking those fast food vendors at closed sporting events, inflated $$$$$ .

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No offense, but it took no time at all to prove your example wrong. As you said it's all conjecture. Your point about $3B being a lot of money is true. Apple achieving same or better for less is back into the realm of conjecture. Apple could have just as likely achieved worse for less money; just like they did with GTAT.



Not sure what you think facts are, but nothing you said below qualifies as one. Below you have a lot of supposition. The far more accurate answer to every question you asked below is maybe, not check. You should really replace those affirmative 'checks' with 'I guess it could be true since I just made it up maybes'. Unless, that is, you have actual facts that you'd like to present in rebuttal.



Specificity (me) vs what if generalities (you). You and I are addressing two different things. I'm talking about the realities of B&O. You're just making up stuff. You're right I do think buying Beats is a smarter decision than buying B&O. At least I based my assertion on actual information. Your entire premise is based on the idea that Apple paid too much and could have gotten equal or better for less. Yet you provided no reason other than you think they could.:confused: Could Beats eventually turn out to be a bad deal? Maybe. Could it also be great? Again, maybe. Can that answer be determined in less than a year of ownership? Highly doubtful. $3B is a lot. Apples seems to think they are getting a lot in return. IMO, of course.

Have you ever bought something , conviencing yourself that it would be awesome , even though it cost sooo much, and once you got it , the novelty wore off, and it just sits there. When you look back, you think to yourself "damn that was a stupid purchase, but I'm not selling it cause the wife will never let me hear the end of it " That's were I think apple is :p
 
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