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It's Official: Apple Acquires Beats for $3 Billion
#1
http://www.cnbc.com/id/101710643?__sourc...%257cstory&par=yahoo&doc=101710643%257cApple+to+acquire+Beats+El

The deal is expected to close in the fiscal fourth quarter. Apple will pay $2.6 billion in cash and another $400 million in equity. It will also continue to use the Beats brand.
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#2
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#3
This deal still doesn't make sense to me. I can only assume that there is more to it than the public knows about.
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#4
With headphone revenues at 1.1 billion, provided that the headphone bubble doesn't burst, Apple could regain their investment in about 4 years.
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#5
ztirffritz wrote:
This deal still doesn't make sense to me. I can only assume that there is more to it than the public knows about.

+1, there's gotta be more to this than just hardware sales...
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#6
They've invested in a fickle market then. It isn't based on quality or substance, but style. Styles shift with the wind.
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#7
ztirffritz wrote:
They've invested in a fickle market then. It isn't based on quality or substance, but style. Styles shift with the wind.

True, but Apple has been pretty good at selling style. I'd guess most people buying iPods and iPhones really aren't too into specs and such. Looks good, work well enough? Deal! That seems to be Beats focus as well.

Still, I'm similarly bemused by the acquisition. This isn't the focus I expect from Apple. Beats is something I avoid. They fall into the same category as Monster, brand focus without enough substance to back up the often outrageous price points.
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#8
silvarios wrote:
[quote=ztirffritz]
They've invested in a fickle market then. It isn't based on quality or substance, but style. Styles shift with the wind.

True, but Apple has been pretty good at selling style. I'd guess most people buying iPods and iPhones really aren't too into specs and such. Looks good, work well enough? Deal! That seems to be Beats focus as well.

Still, I'm similarly bemused by the acquisition. This isn't the focus I expect from Apple. Beats is something I avoid. They fall into the same category as Monster, brand focus without enough substance to back up the often outrageous price points.
When people buy the Gold iPhone, they don't buy cases for them. People might think you don't have the latest bling.
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#9
I am also dismayed at the purchase. I can only think of two reasons to associate with Beats. 1) they are very popular with young people so it might keep apple young and 2) from what I have read their streaming audio service is quite good so perhaps they are gaining some tech or licensing deals there.
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#10
vision63
I feel you. Status symbol*. Still, I would argue the iPhone 5s is a pretty nice phone, no matter the coloration on the outside. Not sure how well Beats various products actually stack up to other less flashy competitors.

Yeah, I know Apple gets knocked for the same rap, but some of Apple’s products are actually pretty nice and review well outside of the Apple slanted niche media.

*I suppose that's why my phone is a nearly all black metal and glass slab. I'm perfectly content to be plain. Although, I also sport it sans case.
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