Will they scrap all those high priced headphones? That's a big chunk of revenue:
The two bought back 25% of the company for $150m in 2012.
"Dr. Dre was seen wearing his headphones in nationwide Dr. Pepper commercials and Jimmy Iovine was frequently wearing a pair around his neck during his appearances as an American Idol coach. The strategy worked and Beats By Dre quickly captured roughly 25% of the worldwide headphone market, selling over 1.5 million units and generating revenues of $500 million in 2011."
Apple could make a set of headphones that have an iPod integrated into them and wireless and cable connections for a Mac. They could improve the bundled headphone quality with the iPhone. If you save having to buy a 3rd party set of headphones, that's a selling point for the iPhone e.g iPhone with beats for $650 vs Android with some other brand headphones for $450 + $150.
It seems a waste to get rid of the hardware when that's a huge part of the brand and revenue.
I wonder if they'll perform at WWDC:
They better bring some booty. WWDC never has enough booty.