Apple's rumored Beats buyout baffles pundits & analysts alike

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  • Reply 21 of 162
    SpamSandwichspamsandwich Posts: 33,407member
    sog35 wrote: »
    He has powerful connections with Warner. 

    Could lead to a TV content deal.

    Is this the new strategy? Buy CEOs and give them their own global business-within-a-business at Apple?
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  • Reply 22 of 162
    gwydiongwydion Posts: 1,101member
    sog35 wrote: »
    You obviously have not done your research.

    No one wears HDMI cables.  It is NOT a fashion statement.

    You probably said that Nike would never survive either when they started selling $120 shoes in the early 80's.
    People PAY for style. 
    Ever heard of Louis Vutton bags?  This is the equivelant for the male population. 

    Is someone comparing Louis Vuitton with Beats and Nike?
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  • Reply 23 of 162
    tzeshantzeshan Posts: 2,351member

    Does any one remember HTC bought Beats a few years ago then let it go?  What happened with it?  HTC tried to integrate Beats with its products?  How?

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  • Reply 24 of 162
    msimpsonmsimpson Posts: 452member
    Quote:

    Originally Posted by knowitall View Post



    Who cares about a measly $3 billion when Apple burns $100 billion or more on shares.

     

    It would be good if you knew it all about accounting so you can understand the financial difference between buying a company and buying back stock.   

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  • Reply 25 of 162
    tundraboytundraboy Posts: 1,932member
    Quote:
    Originally Posted by Gwydion View Post





    Is someone comparing Louis Vuitton with Beats and Nike?

     

    If it's because of their ability, based on cool factor alone, to sell stuff at prices way beyond the cost of production, then it's a valid comparison.  You're smart enough to see that, aren't you?

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  • Reply 26 of 162
    prsdudeprsdude Posts: 4member
    This deal makes no sense and it certainly overvalues Beats.

    The last time everyone was overwhelmingly negative was when they hired ex Dixons John Browett, and we know how well that turned out!
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  • Reply 27 of 162
    rogifanrogifan Posts: 10,669member
    jkichline wrote: »
    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.
    God help Apple if it thinks it needs Beats headphones to become fashionable. I'll bet you all the Apple stock I own, not one Apple designer owns a pair of Beats headphones...that they bought for personal use, not company research.
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  • Reply 28 of 162
    genovellegenovelle Posts: 1,481member
    Quote:

    Originally Posted by sog35 View Post

     

     

    The cloud?  The business is already marginalized.  Companies are giving cloud storage for free.  There is no profit in that game and very little barriers to entry.

     

    AI?  give me a break.  Robots?  WTF.  Living in dream land.

     

    You don't think youth's move the meter? 

    Guess who started the iPod revolution?

     

    Go ahead and barf.  You obviously have no idea what the current climate is.  Beats is like what Nike was in the early 80's.  Who would have thought youths would spend $120 on a pair of shoes before Nike came along?  Its all about Style and LIFE Style.  Beats got it in spades.  With Apple's capital Beats will grow huge.  They already do $1.5B in sales.  I expect that to triple in 5 years. 


    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. 

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  • Reply 29 of 162
    dasanman69dasanman69 Posts: 13,002member
    There has to be something we're unaware of for Apple to make this move. An innovation that has yet to be publicized.
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  • Reply 30 of 162
    smalmsmalm Posts: 677member
    Quote:
    Originally Posted by sog35 View Post

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


    Think about what the Beats line will do for Apple's image with non urban youth: It will take a big hit!

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  • Reply 31 of 162
    gwydiongwydion Posts: 1,101member
    tundraboy wrote: »
    If it's because of their ability, based on cool factor alone, to sell stuff at prices way beyond the cost of production, then it's a valid comparison.  You're smart enough to see that, aren't you?

    And you're smart enough that comparing one of the most luxurious brands in the world with mass consumer brands is beyond stupidity
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  • Reply 32 of 162
    thepixeldocthepixeldoc Posts: 2,257member
    This deal is all about acquiring Jimmy Iovine for Apple team. He will be in charge of "iTunes" and getting the whole entertainment side of company working (deals with studios, etc). Not sure it's a good idea. Aging racehorse. Like LA Galaxy Beckham deal.

    Wow. Way to prove your point that you haven't the bloodiest clue! The Beckham/Galaxy deal was the marketing-coup in sports, because it actually put your dreadful "soccer" league on the map. Even if it was for the Ultimate Glamour Boy of European FOOTBALL, we here in Europe didn't see or even hear if you guys had a league or not for years.

    So now on to what you possibly could have meant by "aging racehorse". Sometimes their are other qualities to the horse and trainer that the casual observer has absolutely no idea about. You do know that horses talk to each other, as other animals do, don't you? A yearling watching that old racehorse train as inspiration, mentoring and trust in the trainer is on the most primitive of levels... something the intelligent among us should take time to observe and experience more often. Which circles back to the Beckham influence quite nicely.... :smokey:
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  • Reply 33 of 162
    saareksaarek Posts: 1,643member

    Makes no sense whatsoever, there are far superior headphones out there from companies such as Bowers & Wilkins. For the money Apple is supposedly pumping into this deal they could create their own far superior set of headphones hundreds of times over.

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  • Reply 34 of 162
    bennettvistabennettvista Posts: 178member
    dasanman69 wrote: »
    There has to be something we're unaware of for Apple to make this move. An innovation that has yet to be publicized.

    A 24 carat gold 3/8" connector jack - wait until you see it!
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  • Reply 35 of 162
    bizzarebizzare Posts: 62member
    InGenius stupidity.
    So disappointed.
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  • Reply 36 of 162
    tundraboytundraboy Posts: 1,932member
    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.

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  • Reply 37 of 162
    timgriff84timgriff84 Posts: 912member

    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.

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  • Reply 38 of 162
    island hermitisland hermit Posts: 6,217member
    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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  • Reply 39 of 162
    awilliams87awilliams87 Posts: 264member
    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.

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  • Reply 40 of 162
    rogifanrogifan Posts: 10,669member
    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?[/QUOTE]

    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.
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