So basically Apple spent $3B to try and look cool to black people?
Brands have a value, even a very high value. Beats brand when coupled with Apple's distribution and own brand cachet is worth even more.
If you think Hiphop is only the purview of "blacks", you haven't seen the US Hot 100 charts lately or looked at what kids have on their heads or listen to.
Blacks have had a massive effect on US culture post 1918. HipHop, RnB, Jazz, Rock & Roll and roots music and general popular culture have all been marked by this influence. This influence has always come through youth culture first to them filter into the rest of society.
Since blacks were seen as "not mattering" and being free from the constraint of "normal society) (this comes in part from stereotypes), anything new could simmer there and those seeking it out could leave their safe haven to seek that excitement. The next big thing doesn't develop in "normal" society but on the fringes.
Apple and jobs once saw themselves as a rebels, so I find this kind of country club attitudes of current Apple buyers kind of funny.
That's the ironic thing that blacks have had so much impact and there are still realy weird comments like yours that seem to be stuck in the segregation era.
Very interesting thoughts. Thanks for sharing them. It seems like your answer to rogifan's question is yes. And I agree, I think that aspect plays a significant role in the value of Beats to Apple (although I don't see much evidence of Apple capitalizing on this). A prominent feeling in African American (I come from a US perspective) culture is lack of acceptance and integration into the culture at large (I think this is largely self fulfilling, but that's a completely different discussion). A brand like Apple valuing and validating Beats I think will be/is meaningful, at some level, to many AAs. There was a significant issue made of Dr Dre becoming the 'first hip hop billionaire', thanks to Apple, and I think that speaks to the point in making.
Fwiw, although I'm from California, I've been living in Texas (the land where everyone is a stereotype of themself, and proud of it), and my work involves significant contact with the AA community, and, unfortunately, there's a lot of android users, and a lot of mistrust and dislike of Apple (for no good reason, it's just the culture).
Sure, but not just. Beats is *the* headphone brand among non audiophile nerds (which is such a small market, it's silly). In the NYC subways, 2 out of 3 headphones are Beats.
The Apple brand of cool is firmly rooted in the aesthetic of the mid-2000s and needs to find ways to evolve or risk being a "dad phone". Beats is part of that.
I wonder what the market is for expensive aftermarket Lightning headphones that will only work with iOS devices? Apple can't make the supplied earpods that good out of fear of cutting into Beats sales, and if they eliminate the headphone jack, how many people will be willing to shell out $200 or more (typical Beats prices, yes?) for something they can only use with Apple devices? Adapters will have to provide power, which means yet another device to charge. I think Apple is going to be pushing their luck if they follow through with the rumored headphone jack demise.
Brands have a value, even a very high value. Beats brand when coupled with Apple's distribution and own brand cachet is worth even more.
If you think Hiphop is only the purview of "blacks", you haven't seen the US Hot 100 charts lately or looked at what kids have on their heads or listen to.
Blacks have had a massive effect on US culture post 1918. HipHop, RnB, Jazz, Rock & Roll and roots music and general popular culture have all been marked by this influence. This influence has always come through youth culture first to them filter into the rest of society.
Since blacks were seen as "not mattering" and being free from the constraint of "normal society) (this comes in part from stereotypes), anything new could simmer there and those seeking it out could leave their safe haven to seek that excitement. The next big thing doesn't develop in "normal" society but on the fringes.
Apple and jobs once saw themselves as a rebels, so I find this kind of country club attitudes of current Apple buyers kind of funny.
That's the ironic thing that blacks have had so much impact and there are still realy weird comments like yours that seem to be stuck in the segregation era.
Very interesting thoughts. Thanks for sharing them. It seems like your answer to rogifan's question is yes. And I agree, I think that aspect plays a significant role in the value of Beats to Apple (although I don't see much evidence of Apple capitalizing on this). A prominent feeling in African American (I come from a US perspective) culture is lack of acceptance and integration into the culture at large (I think this is largely self fulfilling, but that's a completely different discussion). A brand like Apple valuing and validating Beats I think will be/is meaningful, at some level, to many AAs. There was a significant issue made of Dr Dre becoming the 'first hip hop billionaire', thanks to Apple, and I think that speaks to the point in making.
Fwiw, although I'm from California, I've been living in Texas (the land where everyone is a stereotype of themself, and proud of it), and my work involves significant contact with the AA community, and, unfortunately, there's a lot of android users, and a lot of mistrust and dislike of Apple (for no good reason, it's just the culture).
I think the distrust of Apple comes from a kind of confirmation bias.
You must justify the value of your purchase to yourself first. If all you can purchase is a second rate phone (cause they're probably not buying top end Samsung or LG phones either), well what does it say about yourself, your community and it's place in the overall socio-economic scheme of things?
Everyone does this for everything they buy or do so it is not just about this product or situation.
You'd probably get the same view amongst the lower socio-economic wrung of the caucasian population too.
But, at the same time; I actually find their financial reasons for buying Android phones more logical than the tech jockeys buying a S7 for the number of cores or all sorts of other checklist reasons. Buying a $200 phone because that's the only one you can afford actually makes a lot less sense.
I think the distrust of Apple comes from a kind of confirmation bias.
You must justify the value of your purchase to yourself first. If all you can purchase is a second rate phone (cause they're probably not buying top end Samsung or LG phones either), well what does it say about yourself, your community and it's place in the overall socio-economic scheme of things?
Everyone does this for everything they buy or do so it is not just about this product or situation.
You'd probably get the same view amongst the lower socio-economic wrung of the caucasian population too.
But, at the same time; I actually find their financial reasons for buying Android phones more logical than the tech jockeys buying a S7 for the number of cores or all sorts of other checklist reasons. Buying a $200 phone because that's the only one you can afford actually makes a lot less sense.
Interesting thoughts again, and I'm mostly agreed. It sounds like you're describing cognitive dissonance, which likely does play a significant role. However, I still think there may be a bit more mistrust of Apple in the AA community relative to others due to the increased (and culturally ingrained) perception of marginalization by society, which is more likely to cause AAs to perceive such a high-value brand as Apple as part of the society's machinery that is causing them to be marginalized.
I think it's commendable that Apple does meaningful things to rectify society's imbalances, such as donating $40M to promote technology education in historically black colleges, rather than something more superficial such has hiring AAs just for the sake of it (which would even probably be more effective from a mere perception standpoint). It doesn't seem like common knowledge that Apple does these type of things though. As a company that's consistently demonstrated integrity I believe they do these things because they are the right thing to do, but I suppose they may need to be careful about promoting it, so that they are not perceived as doing it for the sake of taking credit. However, it still seems like Apple should do more to promote awareness of these type of things, and of Apple's values. Sadly, to most people, Apple is 'just another company that charges a lot of money for nice things, oh and all those suicides and child workers making iPhones.' I think that's a failure to communicate on Apple's part, and I wish they'd be better about it.
"...In China, Didi faces stiff competition from international ride-sharing giant Uber China,..." This statement is not accurate. What I understand that it is other way around. Didi is available in 400+ cities in China, while Uber is only in 45 or so Chinese cities.
Also, I think this was a wise investment. It will have much larger ROI than Apple $3B investment in Beats. This investment will certainly help pushing Apple Pay and other Apple eco-system plays.
The Beats deal was great and they've already made their money back. Why are people still crying about it? Beats headphones rule the market and every iPhone/iPhoney user is a potential customer.
Streaming is a whole market that has potential just as great.
Beats hardware could potentially generate 6 billion a year under Apple's umbrella. Before being acquired they were generating 3 billion a year with little to no advertising.
Bluetooth is the future and Beats is the Titanic audio brand, I wouldn't be surprised if Tim Cook announces a new Bluetooth product category soon. Headphones, Bluetooth stereos, streaming.... Don't be surprised if the 3 Billion dollar Beats deal generates 12 Billion a year in a decade.
The Didi deal is also great. Very interesting and mysterious. I hope they use the service for transportation research and mapping China.
But ... but ... you are not a paid analyst making stuff up to manipulate AAPL, why should anyone listen to you?
Wow! All I said that it would have larger ROI than Beats - There was no complain about Beats acquisition. Now that since you took the conversation somewhere else - If Beats was already generation $3B/year than I guess Apple got a real deal at $3.2B for Beats. Maybe the numbers you providing doesn't seem right. You mention "potentially" generating $6B - That means you are not sure because I think Beats goes under "Other" column for Apple. Yes, Beats headsets had enjoyed it success for a while - I don't think Millennials are buying them anymore.
Beats headphones are part of the "other" category within the financials. According to Tim and Luca any YOY growth in the other category is/was due to Watch. Apple bought Beats when the headphones were at their peak of popularity. I used to go into Best Buy and all you would see were Beats. Now I see Beats amongst many other brands. Beats may have improved in terms of quality but I think they still have the stigma of being overpriced crap.
Everything Apple sells has a 'stigma' of being overpriced. It doesn't seem to have harmed Apple's bottom line too much though.
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Fwiw, although I'm from California, I've been living in Texas (the land where everyone is a stereotype of themself, and proud of it), and my work involves significant contact with the AA community, and, unfortunately, there's a lot of android users, and a lot of mistrust and dislike of Apple (for no good reason, it's just the culture).
You must justify the value of your purchase to yourself first. If all you can purchase is a second rate phone (cause they're probably not buying top end Samsung or LG phones either), well what does it say about yourself, your community and it's place in the overall socio-economic scheme of things?
Everyone does this for everything they buy or do so it is not just about this product or situation.
You'd probably get the same view amongst the lower socio-economic wrung of the caucasian population too.
But, at the same time; I actually find their financial reasons for buying Android phones more logical than the tech jockeys buying a S7 for the number of cores or all sorts of other checklist reasons. Buying a $200 phone because that's the only one you can afford actually makes a lot less sense.
I think it's commendable that Apple does meaningful things to rectify society's imbalances, such as donating $40M to promote technology education in historically black colleges, rather than something more superficial such has hiring AAs just for the sake of it (which would even probably be more effective from a mere perception standpoint). It doesn't seem like common knowledge that Apple does these type of things though. As a company that's consistently demonstrated integrity I believe they do these things because they are the right thing to do, but I suppose they may need to be careful about promoting it, so that they are not perceived as doing it for the sake of taking credit. However, it still seems like Apple should do more to promote awareness of these type of things, and of Apple's values. Sadly, to most people, Apple is 'just another company that charges a lot of money for nice things, oh and all those suicides and child workers making iPhones.' I think that's a failure to communicate on Apple's part, and I wish they'd be better about it.
Everything Apple sells has a 'stigma' of being overpriced. It doesn't seem to have harmed Apple's bottom line too much though.