Will Beats ruin the future of iPhone?

Discussion in 'iPhone' started by DBZmusicboy01, Jun 4, 2014.

  1. DBZmusicboy01 macrumors 6502a

    Joined:
    Sep 30, 2011
    #1
    What do you think was the real reason Apple bough Beats for?

    And is Tim Cook mad at Dre for telling people he will be a billionaire ?

    I guess it's to appeal to more people.
     
  2. boast macrumors 65816

    boast

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    #2
    For starters, "Beats Acquisition Boosting Apple's 'Coolness' Factor Among Young Consumers."

    And then already having a popular brand that is established, being able to push more for "Apple Introduces Lightning Cable MFi Specifications for Headphones"
     
  3. zedzded macrumors regular

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    Perth, Australia
    #3
    Yeah that's a business reason for the deal, but don't you think they paid way too much?
     
  4. dishfan82 macrumors member

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    Jun 1, 2014
    #4


    I'm glad beats got bought by Apple. I know now the quality and durability will improve. Apple puts out a quality product. The problem with beats before was their headphones didn't last long before breaking. A friend bought a pair and within a year they quit working. If Tim Cook was really that upset that Dre was telling people that then the deal would have never been done. He knows what a big deal it is to have beats headphones.

    There's a younger base of people it appeals to and Apple knows it. Did they overpay? Yes. Apple can afford it and thats a huge payout for Dre. It would be really hard to blow through a billion dollars , let alone 300 billion.
     
  5. 617aircav Suspended

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    Jul 2, 2012
    #5
    Apple bundled headphones are rubbish.
     
  6. thekev macrumors 604

    thekev

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    Aug 5, 2010
    #6
    I haven't seen Apple's earbuds break, but the sound quality isn't there. It makes me skeptical that they would really do much to improve upon that. Apple's retail site has carried some okay third party headphones in the past.
     
  7. smiddlehurst macrumors 65816

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    Jun 5, 2007
    #7
    Not at all. Even leaving aside whatever long term plans Apple may have, the streaming service and the potential boost to their image in certain demographics Beats is still worth it based on their headphone business. In 2013 they had estimated revenue north of $1 Billion and held somewhere around 60% of the high end headphone market. It's a private company so we don't know profit margins but they're likely to be pretty high as they're, effectively, a fashion brand rather than a consumer electronics one.

    To put this in context in the previous quarter Apple made a profit around $10 billion. Beats has basically cost them about a month's worth of profit, hardly a huge risk for the company.
     
  8. Newtons Apple Suspended

    Newtons Apple

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    #8
    I do not think it will ruin Apples future! Do you?:rolleyes:
     
  9. The-Real-Deal82 macrumors 601

    The-Real-Deal82

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    #9
    I'm trying to think of one good reason why it would 'ruin' the future of the iPhone? I can't!
     
  10. maflynn Moderator

    maflynn

    Staff Member

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    Boston
    #10
    It won't ruin the iPhone, but it may not turn out to be money well spent. I have no idea and we'll have to wait and see whether its was a good move by apple, but I don't see how this could ruin the iPhone.
     
  11. mr99 macrumors 6502a

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    Jan 8, 2014
    #11
    I think this will tremendously help their headphones they include with the iPhone. The "beats" brand is huge for whatever reason and will only bring in more $$ for Apple.
     
  12. iPodJedi macrumors 6502a

    iPodJedi

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    Apple Store, USA
    #12
    I don't see any reason for Tim cook to be or have been mad at Dre for saying he is a billionaire... If anything I think it would help both companies and get their product name out there some more... Kind of like an endorsement.
     
  13. elfy macrumors 6502

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    #13
    Pretty sure Apple didn't pay 300 billion.
     
  14. T5BRICK macrumors 604

    T5BRICK

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    Aug 3, 2006
    Location:
    Oregon
    #14
    Beats is still going to be Beats. Apple isn't going to start bundling headphones. Beats has a subscription music service that is pretty highly rated. I'm guessing they wanted access to it. I'm glad, because personally I think iTunes Match and radio are pretty horrible. I've been using Google Music for a while now and it's pretty great.
     
  15. irDigital0l Guest

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    Dec 7, 2010
    #15
    I don't see how the pontential to build better headphones will ruin the future of iPhone.
     
  16. vanesachris89 macrumors newbie

    Joined:
    Jun 6, 2014
    #16
    They bought a Coolness factor and Did not buy a Business . Its cool to have Beats headphones and Apple have hundreds of those Billion Dollars , so its Pretty ok price for them :)
     
  17. Mugambo macrumors 6502

    Mugambo

    Joined:
    Jul 4, 2009
    #17
    Future of iPhone is in the hands of Apple($100B) not their dog collar purchase ($3B). If Beats doesn't work out, they might kill the brand and for all you know buy another 'cool' and 'youth-appealing' headphones company and turn that around.
     
  18. ET iPhone Home macrumors 68040

    ET iPhone Home

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    Orange County, California USA
  19. apollo1444 macrumors 65816

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    #19
    i know i've been banned for being mean in some threads, but come on poster... really?
     
  20. mtneer macrumors 68020

    mtneer

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    Sep 15, 2012
    #20
    I think anyone could forgive Dre for boasting if he got paid $300 billion!! :D
     
  21. TacticalDesire macrumors 68020

    TacticalDesire

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    #21
    It will really help with marketing to teens/twenty somethings. Not all, but it is a brand most recognized by that generation.
     
  22. iMacBooked macrumors 6502a

    iMacBooked

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    #22
    We'll have to wait and see, I guess. At the moment I believe it wasn't really a strategical move of Apple, but you never know what kind of developments something like this could lead to.
     
  23. Silver78 macrumors 6502

    Silver78

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    #23
    It's like an okay meal just added a piece of turd on top
     

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