Even Apple overpay for Beats.

[Hugo Drax]

They seem interested in paying 3.2 Billion for a bunch of Chinese rebranded headphones.


http://www.reuters.com/article/2014/05/09/us-apple-offer-idUSBREA4711X20140509

Well people did say they wanted Apple to spend that money.

 

[Rakehellion]

Looks like they're buying the Beats Music service to integrate with iTunes radio. iTunes is still dominating the online music world, so it looks like they're trying to snatch this one up before it gets too big.

 

[desura]

At heart, Tim cook is a Compaq man.

 

[TwiceOver]

Looks like they're buying the Beats Music service to integrate with iTunes radio. iTunes is still dominating the online music world, so it looks like they're trying to snatch this one up before it gets too big.

I don't think anyone, even apple, was worried about that happening.

Mog couldn't make it, so Beats buys it, look where that went. It's like those stores that go out of business then someone puts a similar store in the same location as if somehow changing the name is going to make a difference.

I have a couple friends at the gym who wear those big ass Beats headphones, long ass cord dangling all over the place waiting to get snagged on everything. I always like to screw with them. "Hey, how's that advertising sound?"

 

[_Rick_]

Apple's core business is brand value.
Brand value is the only thing that Beats has, and by being able to sell the Beats earbugs to the iphonies, they can make money twice on the same sucker.
Makes perfect sense to me.

 

[PliotronX]

Jesus chrimeny what a lesson in name branding. This is why Dre doesn't have to perform any more as he can survive on royalties. While fitty cents vitamin water floundered a bit, beats just keeps growing. Good thing they are not actually the best choice of headphones for their price, I'd feel like a douche wearing them.

 

[Noo]

Tim cook needs to go

 

[CPA]

Looks like they're buying the Beats Music service to integrate with iTunes radio. iTunes is still dominating the online music world, so it looks like they're trying to snatch this one up before it gets too big.

Yeah, not really. iTunes leads downloads, but is well behind Pandora and is even behind iHeartRadio in online streaming.

 

[PokerGuy]

Beats doesn't really hold any particular value as a product, there are plenty of comparable products at comparable (or better) prices.... but what beats does have is a strong brand name with a lot of brand loyalty. Lots of dummies will vastly overpay for the product because it says "beats" on it. Seems like perfect synergy with apple's products.

 

[Rakehellion]

Yeah, not really. iTunes leads downloads, but is well behind Pandora and is even behind iHeartRadio in online streaming.

iTunes doesn't stream. iTunes Radio, Apple's streaming service, was just released this year.

 

[edro]

Fvck... Now all my apple products will start forcing beats down my throat.

 

[ultimatebob]

Makes sense to me... if you're the type of person who's willing to pay $750 for an unlocked 64 GB iPhone5S, you're probably also the type of person who's willing to pony up an extra $100 for special BeatsAudio earbuds for it.

I hope that we at least get a nice looking iTunes skin out of this. That program is pretty bland looking.

 

[Capt Caveman]

They seem interested in paying 3.2 Billion for a bunch of Chinese rebranded headphones.


http://www.reuters.com/article/2014/05/09/us-apple-offer-idUSBREA4711X20140509

Well people did say they wanted Apple to spend that money.

As already mentioned, it was purchased primarily for it's music service, so you are incorrect.

 

[SaurusX]

It's funny, because HTC used to own a large portion of the Beats business. I think they sold it off right before it blew up. Idiots.

 

[halik]

At heart, Tim cook is a Compaq man.

^Compaq with jbl audio

This. If they keep in him in charge, apple will fade into oblivion.

The demographic that buys beats is orthogonal with the apple customer demo. It's akin to Rolex trying to cross brand with boost mobile or ed hardy; or Rolls Royce pairing up with Asanti. The synergy simply isn't there.

 

[Phoenix86]

Beats doesn't really hold any particular value as a product, there are plenty of comparable products at comparable (or better) prices.... but what beats does have is a strong brand name with a lot of brand loyalty. Lots of dummies will vastly overpay for the product because it says "beats" on it. Seems like perfect synergy with apple's products.

Was gonna blast you after reading the first sentence because I thought you missed the real value in Beats but you hit the nail on the head.

I'm sure it's overvalued, but this is the logic.

 

[LookBehindYou]

Well shit, that probably kills any chance of getting Detox from Dre.

"I'm too rich bitch! Fuck it!"

 

[smackababy]

Well shit, that probably kills any chance of getting Detox from Dre.

"I'm too rich bitch! Fuck it!"

This is the real tragedy! Detox is the DNF of hip hop. =(

 

[Wreckem]

It's funny, because HTC used to own a large portion of the Beats business. I think they sold it off right before it blew up. Idiots.

They bought a controlling interest(50.1%) in 2011 for $309million. Sold all but 24.84% of it in 2012 for $150million. The Founders of Beats asked to by back the remaining 24.84% last fall. HTC profited to the tune of ~$106million. By all accounts thats a great return for a two year investment. Not as good as what could have been. HTC is probably pissed because this deal was probably in the works for awhile and HTC didn't sell their last ~25% until late Dec 2013.

 

[LookBehindYou]

This is the real tragedy! Detox is the DNF of hip hop. =(

Yep.

 

[bradley]

This is absolutely hysterical. Thanks for the laugh of the day.

 

[MarkXIX]

All aluminum and glass Beats coming soon with eaRetina quality sound and a custom audio jack format that delivers more beats per millimeter than any other audio device ever.

Good thing I bought my daughter's Beats for her while I was in Afghanistan for $65 so she would finally shut up about her friends who I have never once seen with a pair of Beats on their heads.

 

[Vdubchaos]

Both companies that relies on suckers unite!

Well done

 

[dr150]

All aluminum and glass Beats coming soon with eaRetina quality sound and a custom audio jack format that delivers more beats per millimeter than any other audio device ever.

Good thing I bought my daughter's Beats for her while I was in Afghanistan for $65 so she would finally shut up about her friends who I have never once seen with a pair of Beats on their heads.

On the "Suze Orman Show", some adult called in during the "Can I Afford It" segment, and asked Suze if she could purchase the overpriced $400 Pros.

Suze rolled her eyes/shook her head and firmly denied her request and then questioned her judgement. It was hilarious.

 

[Ns1]

the beats music service is awesome.