I'm sure they make decent profit. Everything I've read about them indicates huge margins on the headphones. Poor sound and build quality, high price tag. Blows my mind that Apple wants to be associated with that (and Dr Dre). Way to ruin a classy brand.
I may be wrong, but I am sure that I read a review of the headphones and it said they pretty much suck. Just because they are the "in" thing doesn't mean Apple needs to buy it.
We all are acutely aware (as Apple fans) that precisely being massively popular and successful is guaranteed to draw negative commentary (click bait). While I agree that Beats aren't quite what I would choose (in the end I recently bought Bose, but only because their noise cancelling is in a league of its own, not because I love the sound), I think it's an overstatement to say they suck (I thought the Studios sounded pretty good). You can't sell that many of something that expensive for very long if you make crap. I bet the profit margins are also right in line with what Apple aims for :-)
If Apple did purchase Beats, my assumption will be because they want Beats Music for their 20 million streamable songs as well their music industry connections.
If Apple did purchase Beats, my assumption will be because they want Beats Music for their 20 million streamable songs as well their music industry connections.
The latter maybe. I doubt the license agreements transfer to Apple that easily however, and certainly, all those would require renegotiation sooner or later.
I may be wrong, but I am sure that I read a review of the headphones and it said they pretty much suck. Just because they are the "in" thing doesn't mean Apple needs to buy it.
They do suck. Go to any Apple store and try them on. Pitiful sound- just trendy.
I have, hence my comment. Look, I just don't think Apple is the kind of company that wants to be associated with rappers doing their 'MF' thing on camera. Does that make me childish?
One thing I've noticed whenever entering an Apple Store. After Apple products, the most square footage is occupied by headphones. That means they sell, and Apple knows which ones sell best. Why not make all the profit, instead of being just the middle man for someone else? It also fits, as has been pointed out, with the intersection of fashion and tech ... this is where Apple excels, and something they intend to build on, with the hiring of Ahrendts.
I agree, 3.2B is a lot (and this video doesn't confirm that figure). But I'm not sure this is quite as silly as it seems. I agree the Dr. Dre phones aren't great (other Beats models are better though). But I'm sure Apple has some pretty interesting plans if they're investing these sums.
I agree. And AppleSauce007 made another point that's always in my mind when it comes to acquisitions with his comment, "As soon as Apple closes this deal and really takes it Global, it will be worth 10 times more." A lot of folks look only at the existing value of a business. But smart acquisitions are smart because there's often a multiplier effect when a small company is purchased by a much larger company, with much larger resources. Apple can bring economies of scale to manufacturing costs, make adjustments to the sound of the headphones and earbuds to serve both the Beats philosophy and the Apple philosophy of acoustic representation, with different representations for different market segments (they can do both). And Apple can put additional marketing muscle and visibility behind the brand, beyond what's already there (which is already pretty huge).
Then there's the music streaming side, which Beats can assist Apple in evolving. Still early days here for all companies involved and Apple has the best shot with its huge size and existing presence.
And then theres the talent acquisition. Part of this is a defensive move to keep that talent from being taken elsewhere.
Finally, Tim Cook is unlikely to make a bad move here. If apple buys Beats, it's because there's good reason to do so and its a stretch to suggest Tim Cook and Apple aren't on top of this area of their business and able to make smart decisions.
I think many of your are just prejudice of black people.
Sorry, I had to say it.
Beats is a HUGE brand. Most of you are too old or too out of it to understand.
They gross $1.5B in revenue a year. A price of 2X revenue is cheap. With Beats they can take iTunes to the next level and strengthen the ecosystem even more. Spread that price tag over 30 years and you see how cheap it really is. Beats has deep connections with the music industry. With this one move Apple will be able to obliterate Spotify, Pandora, and any other brand in the music space.
it might be a huge brand but there is nothing classy about it. And a lot of people considerate overpriced junk. Why would Apple want to be associated with that?
They would go bankrupt if it wasn't for GOVERNMENT WELFARE checks.
You are completely off base with both of those comments. Tesla makes a profit, they paid their government loan off in record time, and welfare checks have absolutely nothing to do with tesla owners. Beats owners, maybe, but tesla owners no.
As for beats being classy; they certainly are classier than Samsung. Just because most of the naysayers here don't understand them doesn't mean they are an illegitimate brand. They are doing something right to earn $1.5 billion/year. Every athlete and celebrity wears beats. They have turned the noticeable Apple white headphone look into something even more noticeable. They clearly know how to market their brand. Combine that with the music industry connections, and I'm a fan of this rumor.
My take on this is, they are targeting the urban communities which believe it or not is the larger market for headphones specifically these headphones.
I'm in NYC and if you walk throughout the entire city all you see are Bose and beats headphones.
It's rare when you see people with the white buds here anymore. And please keep in mind also, the are also getting the beats pill and all of their other Bluetooth devices which do sound well, it is a great market and it shows that apple is open minded to the non-rich and non-upper middle class.
The demographics clearly show who spends the money in this market and who spends the most money for these products.
Also, the urban youth hardly ever use warranties, what does that mean? It means they would rather buy then to use the warranty.
I think many of your are just prejudice of black people.
Sorry, I had to say it.
Beats is a HUGE brand. Most of you are too old or too out of it to understand.
As a middle aged white guy who proudly voted for Obama twice, I have to say that your statement is the biggest pile of steaming horse manure I have come across in years. Beats are a poor excuse for a headphone. EVERY MODEL can be beaten on a sound quality basis for a third of the money. That is the ONLY reason behind my belief that this is an absurd acquisition. Beats us a horrible value for the money. My disdain in solely based on quality. If you want to bring race into this, the only thing I see is another version of black on black crime.
To those skeptics, I'm right there with you... But it was when Apple introduced the iPod! Oh, yes...
On Apple rumors and blog sites there were "discussions" about when Apple would update the OS and here comes Apple with this iPod thingy instead and I'm like WTF and the same admonishment from bewildered naysayers with their comments today were similar to mine way back when.
Glad Steve Jobs was Apple CEO and not me, as the money that the iPod and iTunes Music Store raked in would be nil if I was in charge and where would Apple have been and its stock price be had Jobs never gone that route?
I'm sure Apple has its long term range on what it envisions, if this rumored deal is true. I'm not saying you can't berate Tim Cook for an asinine purchase, but at least have the facts on your side when you do. Which only time will tell. Regarding your stock, you should always keep an eye on that and whether you should sell now or later. / / /
Hmmm. Why does the tone of most of the panic stricken posts here and elsewhere on this subject remind me of the right wing's feelings about the president?
What is similar?... What could it be?
I'm calling it "Donald Sterling Disease" for lack of a better term and being brutally honest what I'm thinking it is. :no:
Some people just don't understand the kind of media connections iTunes is getting in this deal...
Jimmy Iovine is a senior executive at Vivendi Universal Music Group.
Beats investor Carlyle Group / Len Blatvatnik recently bought Warner Music Group.
Vivendi owns about 14% of Beats.
iTunes is about to become the biggest money maker for Apple.
iTunes will own the global music industry if they didn't already.
Wake up people. This is huge for Apple.
As soon as Apple closes this deal and really takes it Global, it will be worth 10 times more.
Comments
I may be wrong, but I am sure that I read a review of the headphones and it said they pretty much suck. Just because they are the "in" thing doesn't mean Apple needs to buy it.
We all are acutely aware (as Apple fans) that precisely being massively popular and successful is guaranteed to draw negative commentary (click bait). While I agree that Beats aren't quite what I would choose (in the end I recently bought Bose, but only because their noise cancelling is in a league of its own, not because I love the sound), I think it's an overstatement to say they suck (I thought the Studios sounded pretty good). You can't sell that many of something that expensive for very long if you make crap. I bet the profit margins are also right in line with what Apple aims for :-)
If Apple did purchase Beats, my assumption will be because they want Beats Music for their 20 million streamable songs as well their music industry connections.
The latter maybe. I doubt the license agreements transfer to Apple that easily however, and certainly, all those would require renegotiation sooner or later.
They do suck. Go to any Apple store and try them on. Pitiful sound- just trendy.
I have, hence my comment. Look, I just don't think Apple is the kind of company that wants to be associated with rappers doing their 'MF' thing on camera. Does that make me childish?
One thing I've noticed whenever entering an Apple Store. After Apple products, the most square footage is occupied by headphones. That means they sell, and Apple knows which ones sell best. Why not make all the profit, instead of being just the middle man for someone else? It also fits, as has been pointed out, with the intersection of fashion and tech ... this is where Apple excels, and something they intend to build on, with the hiring of Ahrendts.
I agree, 3.2B is a lot (and this video doesn't confirm that figure). But I'm not sure this is quite as silly as it seems. I agree the Dr. Dre phones aren't great (other Beats models are better though). But I'm sure Apple has some pretty interesting plans if they're investing these sums.
I agree. And AppleSauce007 made another point that's always in my mind when it comes to acquisitions with his comment, "As soon as Apple closes this deal and really takes it Global, it will be worth 10 times more." A lot of folks look only at the existing value of a business. But smart acquisitions are smart because there's often a multiplier effect when a small company is purchased by a much larger company, with much larger resources. Apple can bring economies of scale to manufacturing costs, make adjustments to the sound of the headphones and earbuds to serve both the Beats philosophy and the Apple philosophy of acoustic representation, with different representations for different market segments (they can do both). And Apple can put additional marketing muscle and visibility behind the brand, beyond what's already there (which is already pretty huge).
Then there's the music streaming side, which Beats can assist Apple in evolving. Still early days here for all companies involved and Apple has the best shot with its huge size and existing presence.
And then theres the talent acquisition. Part of this is a defensive move to keep that talent from being taken elsewhere.
Finally, Tim Cook is unlikely to make a bad move here. If apple buys Beats, it's because there's good reason to do so and its a stretch to suggest Tim Cook and Apple aren't on top of this area of their business and able to make smart decisions.
If you want headphones, but Jerry Harvey Audio.
Beats look good, but sound poor.
(A proud owner of JH16's, and other various Westone, Ultimate Ears & Earsonics products)
You are completely off base with both of those comments. Tesla makes a profit, they paid their government loan off in record time, and welfare checks have absolutely nothing to do with tesla owners. Beats owners, maybe, but tesla owners no.
As for beats being classy; they certainly are classier than Samsung. Just because most of the naysayers here don't understand them doesn't mean they are an illegitimate brand. They are doing something right to earn $1.5 billion/year. Every athlete and celebrity wears beats. They have turned the noticeable Apple white headphone look into something even more noticeable. They clearly know how to market their brand. Combine that with the music industry connections, and I'm a fan of this rumor.
My take on this is, they are targeting the urban communities which believe it or not is the larger market for headphones specifically these headphones.
I'm in NYC and if you walk throughout the entire city all you see are Bose and beats headphones.
It's rare when you see people with the white buds here anymore. And please keep in mind also, the are also getting the beats pill and all of their other Bluetooth devices which do sound well, it is a great market and it shows that apple is open minded to the non-rich and non-upper middle class.
The demographics clearly show who spends the money in this market and who spends the most money for these products.
Also, the urban youth hardly ever use warranties, what does that mean? It means they would rather buy then to use the warranty.
Apple......stayin classy
As a middle aged white guy who proudly voted for Obama twice, I have to say that your statement is the biggest pile of steaming horse manure I have come across in years. Beats are a poor excuse for a headphone. EVERY MODEL can be beaten on a sound quality basis for a third of the money. That is the ONLY reason behind my belief that this is an absurd acquisition. Beats us a horrible value for the money. My disdain in solely based on quality. If you want to bring race into this, the only thing I see is another version of black on black crime.
On Apple rumors and blog sites there were "discussions" about when Apple would update the OS and here comes Apple with this iPod thingy instead and I'm like WTF and the same admonishment from bewildered naysayers with their comments today were similar to mine way back when.
Glad Steve Jobs was Apple CEO and not me, as the money that the iPod and iTunes Music Store raked in would be nil if I was in charge and where would Apple have been and its stock price be had Jobs never gone that route?
I'm sure Apple has its long term range on what it envisions, if this rumored deal is true. I'm not saying you can't berate Tim Cook for an asinine purchase, but at least have the facts on your side when you do. Which only time will tell. Regarding your stock, you should always keep an eye on that and whether you should sell now or later.
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/
I think many of your are just prejudice of black people.
Sorry, I had to say it.
Well rest assured, I've judged you only the the basis of your comment and not on the colour of your skin.
Every athlete and celebrity wears beats.
Which clearly shows that they are a fashion accessory. There's nothing wrong with that, but it's just premium fashion.
I'm calling it "Donald Sterling Disease" for lack of a better term and being brutally honest what I'm thinking it is. :no:
Thank you for explaining.