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Apple's rumored Beats buyout baffles pundits & analysts alike - Page 2

post #41 of 177
InGenius stupidity.
So disappointed.
post #42 of 177
Quote:
Originally Posted by Gwydion View Post


And you're smart enough that comparing one of the most luxurious brands in the world with mass consumer brands is beyond stupidity

Different demographic, same principle.  Surely you get that.

post #43 of 177

I can sort of see it making sense from the perspective that while the iPod has a level of status, Apple headphones have never had a quality status against them. The Apple Hi-Fi was also a bit of a flop. So they might be after Beats as a way of getting some credibility.

 

But if that's the case I doubt it would work as it's just like Dell buying Alienware. Once their part of Apple you would assume it would just be Apple stuff with a Beats logo.

post #44 of 177
Quote:
Originally Posted by genovelle View Post
 

You make a good point.  If they paid the equivalent of two year of revenue achieved with a product that everyone here seams to think sucks.  Imagine what Apple could do, with Jony putting his touch on them and including all the tech Apple has been working on.  Like sensors etc. 

 

This deal is not about a product line. The trick to understanding this deal is to ask what services Beats has to offer.

 

Apple is not interested in the product line (if indeed this rumor is true). Apple learned everything they needed to know about accessories from selling printers.

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post #45 of 177
Quote:
Originally Posted by sog35 View Post
 

Samsung spends $14B a year on advertising and marketing.

 

think about that and what the Beats line will do for Apple's image with urban youth

Doesn't do much. Apple's brand perception, even amongst the "urban youth", is higher than Beats. Like the article stated, Apple has also never bought a company for their brand. Apple has never made a big purchase of a company for their existing end-product to break into their market. Simply doesn't make sense. Apple is not Microsoft.

post #46 of 177
Here's what Tim Cook said last year regarding Apple's approach to acquisitions:
Quote:
Would it help us make a great product, and would the culture fit at Apple?

Can anyone tell me how Beats fits either of those things?

I guess that Samsung ad campaign really hit Apple hard and they think they need to go acquire "cool". How sad.
post #47 of 177
Quote:
Originally Posted by Gwydion View Post


Is someone comparing Louis Vuitton with Beats and Nike?

 

Yes, you saw it here first.  lol

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post #48 of 177
How many people remember Jobs' statement that he had made Jony Ive basically 'untouchable' at Apple? Surely I am not the only one who has noticed that all of the recent hires and action at Apple have to do with fashion and design, outside of and beyond the control of Jony and under the control of Tim? If I was a betting person, I'd see this as Tim's way around the most powerful person at Apple, who would be Jony. Call me paranoid, but internal disagreements and power struggles are really nothing new inside large organizations and my gut tells me money is being used to sidestep Apple's internal design team. Now quick, someone call me crazy and tell me I'm wrong.

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post #49 of 177

The big Question:

 

Lebron will be an endorser of Samsung and Apple/Beats now?

 

Strange conflict.

post #50 of 177
Quote:
Originally Posted by jkichline View Post

While I don't like this news because of the Apple stock I owe, it's not because I don't think it's a good idea... in fact, I think it's a GREAT idea. The reason I don't like it is now the stock is going to take a huge dip because of the idiot analysts and tech pundits that don't have a brain that investors evidently think know everything. This just gave them fuel for the "Apple is doomed" monologue in their talking head video spots. Of course Tim Cook sneezing the wrong way does that. So the stock will drop and when the buyback happens Apple will basically be acquiring Beats for free.

The reason why no one understands the logic is because they aren't Apple. They are looking at things through the lens of Apple being a tech company. Apple, starting many moons ago under Steve Jobs, is transition AWAY from technology. Sure that's what they do, but not who they are. That's why you don't see Apple touting huge spec sheets on their phones. They are not marketing the devices based on numbers, they are marketing them based on form, function and the pursuit of happiness.

Apple is becoming, or more accurately, self-actualizing as a fashion company.

Look at the new hires and look at the products coming down the pipe. It is more important for most people that they buy the hot fashionable item that fills the need that they have. Apple is now working with experience like Burberry, Nike and many others because they are the brand to beat.

This places measly cell phone companies or tech giants in a huge conundrum of not being "cool" and having no idea how to get there.  You'll always have fashion knock-offs and you'll always have pedestrian brands... Apple's is showing through this acquisition that they are going for the king position in branding to today's youth and that, my friends, is a longer term strategy.

Love it! Great post and I'm calculating the move along the same lines.

Would like to add: that rumor about the iWatch being far more a fashion accessory than most people can fathom... and being far more expensive than just an additional gadget for the iPhone... could be the other "rumor" to become reality soon.
Knowing what you are talking about would help you understand why you are so wrong. By "Realistic" - AI Forum Member
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Knowing what you are talking about would help you understand why you are so wrong. By "Realistic" - AI Forum Member
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post #51 of 177

The most profitable company on the planet... and somehow or another a bunch of posters think that NOW Apple has to acquire cool if they want to continue being profitable.

 

Are you shitting me.

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post #52 of 177
If it is true, I would imagine it has to do with preventing Google/Samsung etc from buying it.

Not to mention the headphone line regardless of current quality sells well, and is a high mark-up product, combine this established brand with Apple's technology, engineering and design and it can only improve. This to me is a similar product to what apple had with the iPod, a desirable and relatively affordable product that leads people to purchase more Apple products. (The headphones can also be re-designed with little changes to the technology resulting in upgrades for upgrades sake)
post #53 of 177
Quote:
Originally Posted by island hermit View Post

This deal is not about a product line. The trick to understanding this deal is to ask what services Beats has to offer.

Apple is not interested in the product line (if indeed this rumor is true). Apple learned everything they needed to know about accessories from selling printers.
A CNBC reporter said this morning that their sources are telling them this is all about the headphones. If it was about services like streaming music there are better companies Apple could have acquired.
post #54 of 177
Quote:
Originally Posted by talitrus View Post

If it is true, I would imagine it has to do with preventing Google/Samsung etc from buying it.

Not to mention the headphone line regardless of current quality sells well, and is a high mark-up product, combine this established brand with Apple's technology, engineering and design and it can only improve. This to me is a similar product to what apple had with the iPod, a desirable and relatively affordable product that leads people to purchase more Apple products. (The headphones can also be re-designed with little changes to the technology resulting in upgrades for upgrades sake)

Apple doesn't make defensive purchases. They don't do things to "prevent" others from doing it.

post #55 of 177
Just want to point out that no deal has been officially announced...
post #56 of 177
Quote:
Originally Posted by island hermit View Post

This deal is not about a product line. The trick to understanding this deal is to ask what services Beats has to offer.

I would say "services" and the "keys" to unlock the doors to make those services happen. Iovine has those keys. A whole big bunch of them around a ring the size of Beyoncé's hoops.
Quote:
Apple is not interested in the product line (if indeed this rumor is true). Apple learned everything they needed to know about accessories from selling printers.

You're not serious... are you? Are YOU?

I'm gonna LOL with ya if you forgot the sarcasm tag, just in case.... lol.gif
Knowing what you are talking about would help you understand why you are so wrong. By "Realistic" - AI Forum Member
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post #57 of 177
Quote:
Originally Posted by Rogifan View Post


A CNBC reporter said this morning that their sources are telling them this is all about the headphones. If it was about services like streaming music there are better companies Apple could have acquired.

 

Then Tim Cook has lost his mind... imho.

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post #58 of 177
Originally Posted by AWilliams87 View Post
Apple doesn't make defensive purchases. They don't do things to "prevent" others from doing it.


They do, however, do that with patents.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #59 of 177
Geez, relax people. Apple hardly spends a lot of money on a single company. You guys are acting as if apple spent all 150 billion lol. We are not in the meetings with Tim. Maybe Beats had some new technology that we don't know about.
post #60 of 177

May be Cook is copying HTC.  That is not innovative.

post #61 of 177
Quote:
Originally Posted by ThePixelDoc View Post


I would say "services" and the "keys" to unlock the doors to make those services happen. Iovine has those keys. A whole big bunch of them around a ring the size of Beyoncé's hoops.
You're not serious... are you? Are YOU?

I'm gonna LOL with ya if you forgot the sarcasm tag, just in case.... lol.gif

 

It was a joke about the printers... so I guess I was being sarcastic. I'm just not sure if it's for the same reason attributed by you.

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post #62 of 177
Quote:
Originally Posted by Tallest Skil View Post
 


They do, however, do that with patents.

Apple doesn't buy patents to "prevent" other companies from doing something.

post #63 of 177
Beats has $1B in annual revenue. This purchase may not be about the headphones, but that's what's paying the current bills. I think it's clear this about a company who has serious street cred w/ the youth and no company, not even Apple can sit around and hope it remains fashionable, no matter how fickle the youth can be. I still think the synergies between the 2 are uncertain, but this could also mean the iTunes music revenue drop must be a pretty serious issue.
post #64 of 177
Quote:
Originally Posted by SpamSandwich View Post

How many people remember Jobs' statement that he had made Jony Ive basically 'untouchable' at Apple? Surely I am not the only one who has noticed that all of the recent hires and action at Apple have to do with fashion and design, outside of and beyond the control of Jony and under the control of Tim? If I was a betting person, I'd see this as Tim's way around the most powerful person at Apple, who would be Jony. Call me paranoid, but internal disagreements and power struggles are really nothing new inside large organizations and my gut tells me money is being used to sidestep Apple's internal design team. Now quick, someone call me crazy and tell me I'm wrong.
Ok then, how do you explain Tim giving Jony fullcontrol over software design and Apple changing his official title from SVP Industrial Design to SVP Design? The only fashion hire under Tim's direct control (other than the leader of retail) is the former CEO of YSL. But we have no idea what he is working on. When he was previously employed at Apple he worked in sales. Beats design isn't done in house, it's contracted out to a 3rd party.
post #65 of 177
Originally Posted by AWilliams87 View Post
Apple doesn't buy patents to "prevent" other companies from doing something.

 

Oh, buy, no; you’re absolutely right.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #66 of 177
Quote:
Originally Posted by Rogifan View Post

Ok then, how do you explain Tim giving Jony fullcontrol over software design and Apple changing his official title from SVP Industrial Design to SVP Design? The only fashion hire under Tim's direct control (other than the leader of retail) is the former CEO of YSL. But we have no idea what he is working on. When he was previously employed at Apple he worked in sales. Beats design isn't done in house, it's contracted out to a 3rd party.

I know, it's crazy... right?

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Proud AAPL stock owner.

 

GOA

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post #67 of 177
Quote:
Originally Posted by Tallest Skil View Post
 

 

Oh, buy, no; you’re absolutely right.

No, it's my mistake. I should have wrote my original reply clearer. Apple patents it's own tech to stop others from copying them. You're right about that. But they don't do so to "prevent" other companies from something they wouldn't do themselves. I.E. A non-practicing entity.

 

But to the original reply: Yes, Apple doesn't buy other companies to "prevent" other companies from buying/doing something. They make purchases of companies that fit into an existing/upcoming product their releasing themselves.

post #68 of 177
Quote:
Originally Posted by SpamSandwich View Post

I know, it's crazy... right?
Apple spending $3.2B for a brand is crazy. Especially a brand that a lot of people consider to be overpriced crap. Must have been some snow job by Jimmy Iovine and Dr Dre.
post #69 of 177
Eddy Cue is very media savy. Therefore, I suspect there is a lot more to this than currently reported.
post #70 of 177
Quote:
Originally Posted by Rogifan View Post


Apple spending $3.2B for a brand is crazy. Especially a brand that a lot of people consider to be overpriced crap. Must have been some snow job by Jimmy Iovine and Dr Dre.

 

... because Apple's brand needs rescuing.

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post #71 of 177
Quote:
Originally Posted by island hermit View Post

... because Apple's brand needs rescuing.
And Beats is the company to do it? 1oyvey.gif
post #72 of 177
Quote:
Originally Posted by island hermit View Post

... because Apple's brand needs rescuing.

Where's the "s/"?

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Proud AAPL stock owner.

 

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post #73 of 177
Quote:
Originally Posted by RalphMouth View Post
 

First impression: worst deal by Tim Cook ever.

 

I don't really see the synergy between Apple and Beats. Apple is known for producing quality hardware and Beats has second rate headphones. If Apple is after their streaming music service, John Gruber claims the licenses aren't transferable. Maybe he is wrong. Beats is certainly being overvalued in this deal and is not worth $3 Billion.

 

I need to seriously consider unloading my positions in AAPL now.

 

Why? Google and Microsoft make dumb deals like this everyday, and I think buying Beats is a utter waste of money if true. No different than Apple buying Twitter, Netflix, Box or Dropbox. Spending money on any company where you already have the capacity in house is a waste.

post #74 of 177
Quote:
Originally Posted by Rogifan View Post


And Beats is the company to do it? 1oyvey.gif

 

LOL!

 

You know I was joking, right?

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post #75 of 177
Quote:
Originally Posted by SpamSandwich View Post


Where's the "s/"?

 

There are some statements that don't require an /s tag. They are so ludicrous that even if the person is serious it is still ridiculous.


Edited by island hermit - 5/9/14 at 8:45am
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post #76 of 177
Quote:
Originally Posted by gprovida View Post

Eddy Cue is very media savy. Therefore, I suspect there is a lot more to this than currently reported.

 

Eddy Cue isn't media savvy that's the problem, streaming radio within iTunes is a joke. Preset radio stations that you can't get rid of and if someone knows please tell.

post #77 of 177
Quote:
Originally Posted by sog35 View Post

Samsung spends $14B a year on advertising and marketing.Also, the politics of the Beats brand sustainability runs counter to apples brand message.

think about that and what the Beats line will do for Apple's image with urban youth

Urban youth who can afford beats are most likely buying or desire to buy apple products.
Plus, beats brand strength stems from its constant, conspicuous association with basketball and hip hop stars. It would be nearly impassible for apple to psychologically merge the beats brand audience w theirs unless apple continues to make marketing deals with NBA and hip hop.
post #78 of 177

By the way, I read that Beats' contracts are not expected to be transferred in the deal.

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post #79 of 177

All the armchair quarterbacks are out in force to comment on this RUMOR. Analysts are falling all over themselves to explain, condemn, tout, or reverse engineer the RUMOR. When it turns out to be just a RUMOR then we’ll see the same goon squad writing screeds as to why the RUMORED deal fell through, how Apple once again screwed something up and is doomed.

 

Does that about sum it up as to what’s going on here? Oh, and this thread is quite humorous in its pontificating bloviation. 

post #80 of 177
Quote:
Originally Posted by nathanimal View Post

Just want to point out that no deal has been officially announced...

 

That’s because there is no deal to be announced.

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