Apple buying beats for 3B

[Stillriledup]

I know this is probably a stupid question, but why not just make your own headphones? Its not like they don't have the technology.

[BettinBilly]

From what I understand, SRU, Beats is super popular with Gen X and Y and even 10 year olds. I never had kids, but a friend told me that his daughter wanted only ONE thing for Christmas this year, Beats.

They are buying the name and the following. And I assume you have seen the price of Beats headsets? They are not inexpensive.

[JustRalph]

From what I understand, SRU, Beats is super popular with Gen X and Y and even 10 year olds. I never had kids, but a friend told me that his daughter wanted only ONE thing for Christmas this year, Beats.

They are buying the name and the following. And I assume you have seen the price of Beats headsets? They are not inexpensive.

Ding! Btw, Dr. dre and Iovine are cashing out big time. Their brand has been stagnant the last year or so.

Lots of Apple Share holders have been demanding they start buying up some stuff or pay more dividends. They are getting their wish. Btw, speculation and internal rumors that last year Apple did a survey and found that blacks don't buy Apple products. Coincidence?

[ManU918]

From what I understand, SRU, Beats is super popular with Gen X and Y and even 10 year olds. I never had kids, but a friend told me that his daughter wanted only ONE thing for Christmas this year, Beats.

They are buying the name and the following. And I assume you have seen the price of Beats headsets? They are not inexpensive.

I personally think this is a horrible move by Apple. Beats loses all of its "street credibility" once Dre is no longer associated with the Brand. Sure his name will still be said but the cool factor is gone and once the cool factor is gone the celebrities and athletes will stop wearing them and once the celebrities and athletes stop wearing them, the avg joe will stop wearing them.

[JustRalph]

I personally think this is a horrible move by Apple. Beats loses all of its "street credibility" once Dre is no longer associated with the Brand. Sure his name will still be said but the cool factor is gone and once the cool factor is gone the celebrities and athletes will stop wearing them and once the celebrities and athletes stop wearing them, the avg joe will stop wearing them.

This is lunch money for Apple. They are hoping to buy market share in the black community. It might take ten years to break even, but they will eventually profit.

They really don't care at all. This is a company that pays an effective tax rate of 12% (several estimates out there) by running money offshore etc. the pure publicity received by this buyout will probably make it worth it.

[TJDave]

Beats is headphones?

[JustRalph]

Beats is headphones?

http://www.beatsbydre.com/

[Boris]

About 2 years ago, I worked for a company that sold a lot of Beats. For a business conference, they brought Iovine in as a guest speaker. Long story short, he said that he and Dre began talking about how to stop people from "stealing" music through downloading. Then decided they could make more money if they sold them better quality headphones since what they were listening on was crap. It was a good story for business about solving a problem you can control. Gave away about 500 headsets to everyone in the room. Iovine's last words were "gifts work". I'd guess that's why you see every athlete and celebrity wearing them.

[BettinBilly]

Piece about the purchase was on CBS This Morning today.

Bottom line, they thought there were three reasons Apple made this purchase.

1.) Founder names and Brand Popularity - Dre et al deemed valuable

2.) Beats Headphone popularity and profit

3.) Online Streaming. Although Beats Online Streaming is small (by industry comparison) at present, eventually Apple thinks it will be much bigger than the iTunes purchase model they presently have


The Reporter at CBS when asked if jobs would have agreed with the purchase said no.