Apple's massive $3B bet on Beats a sure thing compared to all-in gamble on NeXT in 1996

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Comments

  • Reply 41 of 108
    solipsismxsolipsismx Posts: 19,566member
    This is an ignorant pile of thought. With just over 300 regular full-time employees, world-wide, Apple gains a world class Operating System for the Consumer to the Federal Govt., decades worth of technologies that are the heart and soul of Apple today.

    Sorry, but please don't speak of NeXT, unless you were an employee at NeXT. You paint yourself a fool to do so.
    apple ][ wrote: »
    I've never worked at NeXT and I'm not connected to them in any way, but I would be offended too, if somebody compared NeXT, which provided the foundation that all Apple products are built upon today, to a company that merely makes headphones. What a joke.:lol:

    What?! Why must you be an employee of a company in order to be able to mention them? How many of us here have worked for Apple? Have you worked for Apple, or just NeXT, mdriftmeyer?

    The comparison is valid because this is the largest known acquisition that has exceeded their NeXT acquisition, and it exceeds it by nearly 8x. All this is comparing is the relative size when you look at Apple's value today compared to then. This is a beautiful way of looking at it because it shows that Beats is a relatively small purchase compared to NeXT despite the direct cost being nearly 8x higher.

    If anything you two should see how this lauds Apple's NeXT purchase as being even more significant.
  • Reply 42 of 108
    wigbywigby Posts: 692member
    Quote:

    Originally Posted by Apple ][ View Post

     

     

    The Beats brand is garbage compared to Apple, so it makes no sense at all for Apple to want to build off of that.

     

    What's next? Is Ferrari going to acquire the Ford Pinto brand, because they wish to build off of that, since their own name isn't good enough obviously?


    Beats brand is garbage compared to Apple's mobile devices and computers, not headphones. If you go outside and ask anyone about Apple's solution to headphones, they would say "What, you mean EarPods?" and then start laughing at you. So while Apple could make their own premium line of headphones, they choose not to. Even the EarPods they make for their own products are not considered premium.

  • Reply 43 of 108
    apple ][apple ][ Posts: 9,233member
    Quote:
    Originally Posted by wigby View Post

     

    Beats brand is garbage compared to Apple's mobile devices and computers, not headphones. If you go outside and ask anyone about Apple's solution to headphones, they would say "What, you mean EarPods?" and then start laughing at you. So while Apple could make their own premium line of headphones, they choose not to. Even the EarPods they make for their own products are not considered premium.


     

    Apple's headphones are free when people buy certain devices, so I don't think that it's a fair comparison at all to compare a free headphone to other third party headphones that are definitely not free. Apple's newer earpods are definitely a step above the previous earphones that Apple made, which were also free.

     

    And I still think that Apple chose not to acquire the best, they merely chose to acquire what's popular at the moment within a certain group of people, and I believe that goes against Apple's DNA.

  • Reply 44 of 108
    adonissmuadonissmu Posts: 1,776member
    Quote:

    Originally Posted by Apple ][ View Post

     

    The price or the amount has never been my main concern, and it shouldn't be Apple's main priority either, if I am to believe what Apple has said in the past.


    Helpful hint: 

     

    Never believe anything Apple has said in the past. It's in the past and may not be relevant in the future. 

  • Reply 45 of 108
    droidftwdroidftw Posts: 1,009member
    Quote:
    Originally Posted by Apple ][ View Post

     

    Good enough for the masses is not a benchmark that Apple should be aspiring to. I hold them to higher standards than that, or at least I used to.


     

    I completely disagree and it would appear that the executives at Apple do as well.  Apple has always put the user experience over having the best specs or the most options.  Good enough for the masses is their bread and butter.  Apple has always been about taking technology and making it accessible to as many people as possible in terms of design and usability.  The beauty of Apple products is their simplicity while still being functional, not being the most powerful.

     

    In the sound world, just look at the substandard earbuds that come with iDevices.  Even Iovine was talking down about them which is highly unusual considering their recent business arrangement.  Beats headphones, while not my choice and not your choice will certainly be a step up from where Apple was at.

     

    Quote:
    Originally Posted by Apple ][ View Post



    And I still think that Apple chose not to acquire the best, they merely chose to acquire what's popular at the moment within a certain group of people, and I believe that goes against Apple's DNA.



    Depends on how you define best.  Beats is the best in certain categories.  It just depends on which categories you place importance in.  As far as going against Apple's DNA, once again I disagree as well as the exectutives at Apple disagreeing too.  Cook is on record saying that he's pleased with the Beats brand and the quality of their headphones.

     

    EDIT:  "They've also built an incredible premium headphone business that’s been tuned by experts and critical ears." - Tim Cook

    http://recode.net/2014/05/28/tim-cook-explains-why-apple-is-buying-beats-qa/

  • Reply 46 of 108
    adonissmuadonissmu Posts: 1,776member
    Quote:
    Originally Posted by Apple ][ View Post

     

     

    Apple's headphones are free when people buy certain devices, so I don't think that it's a fair comparison at all to compare a free headphone to other third party headphones that are not definitely not free. Apple's newer earpods are definitely a step above the previous earphones that Apple made, which were also free.

     

    And I still think that Apple chose not acquire the best, they merely chose to acquire what's popular at the moment within a certain group of people, and I believe that goes against Apple's DNA.


    - Profitable company

    - Sells expensive headphones people are willing to buy in large quantities

    - Streaming service

    - Content creator connections

    - Previous work history with the people involved

    - A way to add value by getting people to use Apple related products on other platforms

    - Apple can get far more favorable pricing on components than Beats alone. So there is a clear path for Apple to significantly improve upon the quality of the headphones.

     

    If acquiring an already thriving and highly profitable business is not in Apple's DNA, it should be. 

  • Reply 47 of 108
    hillstoneshillstones Posts: 1,490member
    Quote:

    Originally Posted by gwmac View Post

     

    My original negative take was based off of a headphone purchase a young friend of mine made several months back. He often consults me about any tech type questions and asks my opinion. He wanted some high quality headphones and was trying to decide between a few different Beats models. I did some research and gave him a few suggestions for models by Shure and Sennheiser instead were actually cheaper but seemed to get far better ratings from some pro review sites. He would have none of it. He would not consider those brands for even a second. It was Beats or nothing. So even though he knew review sites rated Beats poorly and thought they were overpriced, that is what he wanted and would not even consider superior sounding and cheaper alternatives. That says a lot. Imagine how sticky the consumers will be once Apple engineers get a chance to actually make Beats headphones sound far better. 


    Reviews can be subjective and so can sound to any person.  Although you made recommendations, maybe your friend did not like the sound of Shure or Sennheiser.  Maybe he preferred the sound quality of Beats, even though you don't like them.  Maybe he hurt your ego for not going with headphones you wanted him to buy, but it sounds like he found headphones that he likes.  The Beats headphones do not sound bad, if that is the sound you prefer.  Many people either love or hate Bose products, but it all depends on the sound quality you prefer.  

     

    I had the Harmon Kardon original SoundSticks (USB) for over 10 years.  They are highly reviewed and award winning in design.  I always thought they sounded great, which they still do.  I recently replaced them with the Bose Companion IIIs, and the Bose sound better than the SoundSticks in my opinion.  They have a brighter sound, deeper bass, and more power than the HKs.  The Bose also look better in appearance, matching the look of my iMac better than the HKs.

     

    Don't knock your friend for listening to your advice, then deciding on his own what he preferred to buy.  I am sure he considered your options, but preferred the sound of Beats.

  • Reply 48 of 108
    adonissmuadonissmu Posts: 1,776member
    Quote:

    Originally Posted by SolipsismX View Post







    What?! Why must you be an employee of a company in order to be able to mention them? How many of us here have worked for Apple? Have you worked for Apple, or just NeXT, mdriftmeyer?



    The comparison is valid because this is the largest known acquisition that has exceeded their NeXT acquisition, and it exceeds it by nearly 8x. All this is comparing is the relative size when you look at Apple's value today compared to then. This is a beautiful way of looking at it because it shows that Beats is a relatively small purchase compared to NeXT despite the direct cost being nearly 8x higher.



    If anything you two should see how this lauds Apple's NeXT purchase as being even more significant.

    You know who you are dealing with... 

  • Reply 49 of 108
    adonissmuadonissmu Posts: 1,776member
    Quote:
    Originally Posted by hillstones View Post

     

    Reviews can be subjective and so can sound to any person.  Although you made recommendations, maybe your friend did not like the sound of Shure or Sennheiser.  Maybe he preferred the sound quality of Beats, even though you don't like them.  Maybe he hurt your ego for not going with headphones you wanted him to buy, but it sounds like he found headphones that he likes.  The Beats headphones do not sound bad, if that is the sound you prefer.  Many people either love or hate Bose products, but it all depends on the sound quality you prefer.  

     

    I had the Harmon Kardon original SoundSticks (USB) for over 10 years.  They are highly reviewed and award winning in design.  I always thought they sounded great, which they still do.  I recently replaced them with the Bose Companion IIIs, and the Bose sound better than the SoundSticks in my opinion.  They have a brighter sound, deeper bass, and more power than the HKs.  The Bose also look better in appearance, matching the look of my iMac better than the HKs.

     

    Don't knock your friend for listening to your advice, then deciding on his own what he preferred to buy.  I am sure he considered your options, but preferred the sound of Beats.


    I prefer bass heavy headphones. So given the reviews I may check out a pair. Now I will have a pair of Bose for at the gym and a pair for elsewhere. After trying out beats streaming service I actually prefer it to Spotify. 

  • Reply 50 of 108
    adonissmuadonissmu Posts: 1,776member
    Quote:
    Originally Posted by Apple ][ View Post

     

     

    I've never worked at NeXT and I'm not connected to them in any way, but I would be offended too, if somebody compared NeXT, which provided the foundation that all Apple products are built upon today, to a company that merely makes headphones. What a joke.<img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />


    The point is that NeXT was an expensive purchase. BEATS is not an expensive purchase. It's already paid for itself as the stock price went up 11 bucks which translates into billions of dollars for apple. 

  • Reply 51 of 108
    hametahameta Posts: 79member
    droidftw wrote: »
    Exactly, they're fashionable and good enough for the masses.  They're not what I would choose, but I tend to require more from my tech devices then your average user so performance trumps style everytime.  If I can save money in the process, then that's a bonus!
    apple ][ wrote: »
    Good enough for the masses is not a benchmark that Apple should be aspiring to. I hold them to higher standards than that, or at least I used to.

    Spot On.

    But Why " FanDroid " is Paticipating in The Argument of Appleinsider in The First Place ?
  • Reply 52 of 108
    auxioauxio Posts: 2,707member
    Quote:

    Originally Posted by Apple ][ View Post

     

    I've never worked at NeXT and I'm not connected to them in any way, but I would be offended too, if somebody compared NeXT, which provided the foundation that all Apple products are built upon today, to a company that merely makes headphones. What a joke.<img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />


     

    I agree.  The technology created at NeXT was decades ahead of its time and, when the cost of the computing hardware required to make it work came down to levels which the average person could afford, it enabled the turnaround of Apple.  Hardly comparable.

  • Reply 53 of 108
    rezwitsrezwits Posts: 874member
    Time and Place (Space), I don't even see WHY (not how) you would even possibly compare Beats to NeXT! bah!
  • Reply 54 of 108
    wigbywigby Posts: 692member
    apple ][ wrote: »
    Apple's headphones are free when people buy certain devices, so I don't think that it's a fair comparison at all to compare a free headphone to other third party headphones that are definitely not free. Apple's newer earpods are definitely a step above the previous earphones that Apple made, which were also free.

    And I still think that Apple chose not to acquire the best, they merely chose to acquire what's popular at the moment within a certain group of people, and I believe that goes against Apple's DNA.

    You're right and that's why I trust Apple's choices as a shareholder and customer. I think there are a few details we do not know about here. But even on the surface, this is a solid business move. At least that seems to be the Wall Street concensus today.
  • Reply 54 of 108
    apple ][apple ][ Posts: 9,233member
    Quote:

    Originally Posted by HAMETA View Post



    Spot On.



    But Why " FanDroid " is Paticipating in The Argument of Appleinsider in The First Place ?

     

    Yeah, it's kind of like bizzaro world all of a sudden.

     

    Somebody with "Droid" in their name is defending Apple and thinks that this deal is awesome, while somebody with "Apple" in their name is criticizing Apple and is skeptical to this deal. <img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />

  • Reply 56 of 108
    auxioauxio Posts: 2,707member
    Quote:
    Originally Posted by AdonisSMU View Post

     

    The point is that NeXT was an expensive purchase. BEATS is not an expensive purchase. It's already paid for itself as the stock price went up 11 bucks which translates into billions of dollars for apple. 


     

    And Apple went from about $5 a share in 1998 to over $600 a share building products on top of the technology foundation created at NeXT.  Obviously there's more to the picture (well-designed hardware, good marketing, etc), but it was a big part of making that happen.

  • Reply 57 of 108
    adonissmuadonissmu Posts: 1,776member
    Quote:

    Originally Posted by Apple ][ View Post

     

     

    Yeah, it's kind of like bizzaro world all of a sudden.

     

    Somebody with "Droid" in their name is defending Apple and thinks that this deal is awesome, while somebody with "Apple" in their name is criticizing Apple and is skeptical to this deal. <img class=" src="http://forums-files.appleinsider.com/images/smilies//lol.gif" />


    I don't hold much stock in names. 

  • Reply 58 of 108
    bigmikebigmike Posts: 266member
    Damn. Now Dre is definitely not finishing his album.
  • Reply 59 of 108
    dasanman69dasanman69 Posts: 13,002member
    apple ][ wrote: »
    Yeah, it's kind of like bizzaro world all of a sudden.

    Somebody with "Droid" in their name is defending Apple and thinks that this deal is awesome, while somebody with "Apple" in their name is criticizing Apple and is skeptical to this deal. :lol:

    Irony at its best. ;)
  • Reply 60 of 108
    Come on. Someone say it. The purchase proves that Apple is not a whitey only world.
    When you look around at the people that use Samsung and Beats, these people will be pulled into the Apple thing.
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