Apple Getting Its Beats On In $3.2B Buyout Of Beats Electronics

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News Posted: Fri, May 9 2014 2:50 AM

If rumors prove true, Apple is on the verge of making its largest acquisition to date. While it might seem like a bit of a strange move at first, Apple's keen on purchasing Beats, the maker of the current de facto trendy headphones, those founded by successful hip-hop star / producer / entrepreneur, Dr. Dre.

If this deal goes through, no one is going to say they Forgot About Dre: Apple's willing to part with a massive $3.2 billion. This is striking mostly for the fact that Apple has largely been a conservative company, despite having enough money in the bank to make many acquisitions. But, when looking at the finer details, certain perks can be seen.

While Apple provides the world with its largest digital music marketplace, it's virtually an unknown in the streaming space, where Pandora, Spotify, and even Last.fm reign supreme. By contrast, Beats in January unveiled its own streaming service, and it happens to be pretty good. This is primarily due to the fact that there's a human element at play: Playlists are not entirely computer-generated.

Streaming is no doubt one part of Apple's focus here, but so too must be the instant entry into the high-end headphone market. Clearly, many consider an iPhone to be a fashion accessory, and likewise, many consider Beats headphones to be the same. 

Nonetheless, while it might seem a little odd for Apple to shell out over 3 billion dollars to acquire something that it could no doubt build from the ground up for much less, it'd be saving itself a lot of time by simply sucking it up and immediately becoming a major part of the high-end headphone market. I follow a couple worldwide sports, and it's amazing how many athletes I've seen sporting Beats headphones - it truly is the trendiest option at the moment, and I think there's little doubt that Apple realizes that well.

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iBeat :)

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if you know what I mean ;)

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Sorry for serious users :-(

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They're ruined, did they buy beats brand or monster, the lot that make them?

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sevags replied on Fri, May 9 2014 10:08 AM

What a horrible purchase. Beats audio is definitely not "high-end" not at all even when they were partnered with Monster they weren't high-end and since that partnership ended as predicted the sound quality of their new models have dropped below even the original introductory models. It is just a trendy brand with no real performance.nits like Bose all over again "better sound through marketing". Then there is the fact that HTC didn't see any success with them and hand to sell part ownership back to Dr Dre. Then there is the fact that the brand Beats audio being slapped on HP laptops never showed that it helped sales increase. All for just a name and no actual technology. Owell it's apples money to waste .

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acarzt replied on Fri, May 9 2014 10:17 AM

Just one more reason for me to not like Beats headphones lol I already didn't like Apple, so they can have Beats.

I'll stick with my android devices and my Bowers and Wilkins headphones :-)

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http://www.youtube.com/watch?v=E5a93wABHNM&feature=youtu.be

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RWilliams replied on Fri, May 9 2014 11:31 AM

It's high-end in price only. I'd personally find it cooler to see someone walking down the road with a pair of Beyers that cost half as much and sound just as good on their head.

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RWilliams replied on Fri, May 9 2014 11:33 AM

A classic!

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beating rihanna ofc'

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Beats suck anyway...

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So much for android phones getting beat sound. A better company needs to step up. Beats crap is over rated anyways.

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My HP Beats laptop sounds like crap.

 SPAM-posters beware! ®

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699.99$ Beats Headphones coming rightup!

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My Audio Technica ATH-M50s sound far suppirior to the most "high-end" beats head phones, Beats cost $350.00, My Audio-Technicas cost me $65.00... What is it with apple wanting to sell crap products with a rediculous price mark up...

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digitaldd replied on Mon, May 12 2014 12:43 PM

I have a set of $20 headphones from monoprice that sound way better than Beats. But seriously i do not think this has anyhting to do with headphones probably a lot more to do with the beats music service and maybe some exclusive arrangement with Dre/Iovine signed artists for said service. Artist do not make hardly anything at all from streaming so an exclusive agreement might be beneficial for some.

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