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[Futureman]

Surface speculation is that they want Beats for the now iconic headphones (6 years ago it was all white ear buds, not anymore) plus the streaming service.

If you go deeper, they are saying it has more to do with Iovine's music industry connections and Beats' wearable prototypes.

 

[Gorillaz]

 

[BIGWORM]

Dre rollin' in it, now.

Even more so than before.

 

[Chuckl3s]

No press release on Apple's website yet?

EDIT: Not on the Beats website either.

Where is this news coming from?

http://www.apple.com/pr/library/2014/05/28Apple-to-Acquire-Beats-Music-Beats-Electronics.html

 

[kess]

For 3 billion dollars, they could have set up a computer simulation of Iovine's brain

 

[The Lamp]

Over hyped, over priced hardware?

Exactly.

I have lots of friends who happen to own both. When I ask them why they have a Mac or why they bought Beats, it's the same answer. "I just like it" and "It just works well". It really is the perfect brand union, imo.

 

[Deadly Cyclone]

Dr Dre now works at Apple, let that sink in. Dre is showing Drake what "started from the bottom" really means. NWA and the streets of Compton, CA to Apple. Incredible.

Exactly.

I have lots of friends who happen to own both. When I ask them why they have a Mac or why they bought Beats, it's the same answer. "I just like it" and "It just works well". It really is the perfect brand union, imo.

Except the difference is Macs are overpriced, but are extremely good hardware and quality. Beats are just average in the quality and hardware department.

 

[Rootbeer]

Apple has all the talent and money to do anything Beats has done or will do in-house... simply baffling.

Beats has a reputation for being poor quality hardware. Stark comparison to the reputation Apple has painstakingly built. It will be fun watching this pan out, but I'm getting bad vibes.

 

[KingGondo]

It would be cool if Apple actually made Beats into actual quality competitors in the premium headphone market and lowered the price.

Actually, let me revise that since this is Apple:

It would be cool if Apple actually made Beats into actual quality competitors in the premium headphone market and lowered the price .

 

[MrKnives]

Why buy something that is at the end of its life cycle. Beats is a dying brand.

 

[DominoKid]

 

[ipitydatfu]

lebron made bank with his supposed stake in beats

 

[sixteen-bit]

Samsung diss track on Detox confirmed

 

[smokeandmirrors]

Why buy something that is at the end of its life cycle. Beats is a dying brand.

oh is it really. and you know this how...

 

[Xpike]

Good for them I guess? Like, I don't see anything that Beats has that could help Apple, they already sell overpriced shitty headphones.

 

[TangoAlphaLima]

Match made in heaven

"Beats' profit margins in the headphone market may be substantial. A pair of its high-end headphones retail for as much as $450, but production costs across the brand run only about $14 a pair, according to The New York Times. Apple said the deal would add to earnings in fiscal 2015."

LOL. Absolutely. It was destined to be.

 

[tabs2002]

 

[D4Danger]

WTF

Apple reportedly have >$150b in cash

 

[nilbog21]

I just watched Jobs w/ ashton Kutcher. I don't know how accurate it is, but I'm pretty sure that Steve Jobs would be rolling in his grave at this news...

 

[ElectricBlanketFire]

I normally can understand when something I may not personally care for is insanely popular.

I truly don't understand how Beats got this huge.

 

[qizah]

Match made in heaven

"Beats' profit margins in the headphone market may be substantial. A pair of its high-end headphones retail for as much as $450, but production costs across the brand run only about $14 a pair, according to The New York Times. Apple said the deal would add to earnings in fiscal 2015."

Wow, that's a ridiculous margin.

I normally can understand when something I may not personally care for is insanely popular.

I truly don't understand how Beats got this huge.

You forgot about Dre.

 

[Malvolio]

Buying a "cool" image. How appropriate.

 

[TangoAlphaLima]

Dr Dre now works at Apple, let that sink in. Dre is showing Drake what "started from the bottom" really means. NWA and the streets of Compton, CA to Apple. Incredible.

I hope Dre's future autobiography is titled "From Compton to Cupertino."

 

[Robot Pants]

I still can't wrap my head around why :/

.
So dumb

 

[Ashodin]

DAMN. WE MADE IT

 

[Mii]

WTF

Want a real shocker?

For the Fiscal Quarter Ended March 29, 2014

($ Millions)

Cash & Cash Equivalents: 18,949
Short-term marketable securities: 22,401
Long-term marketable securities: 109,239

 

[RS4-]

Now people get to pay more for their iphones

 

[dankir]

The funniest part was when Tyrese started crip walking after lol.

 

[Himynameischris]

Clearly the only thing Beats has going for it is that they are "cool" and "hip." Plus, I'd imagine the market demographics for Beats are quite a bit different than for the standard Apple user.

Demographics is a good point...for 3 billion though? We shall see.

 

[mre]

Apple reportedly have >$150m in cash

I think you put an "m" where you meant to put a "b".

 

[clav]

Poor Steve Jobs.

 

[kurtrussell]

On the day that Google announce an envelope pushing self driving car, Apple confirm a tie-up with Dr Dre's magic headphone company.

Confirmed: Apple jump the shark

Do Beats hold any patents? I'd imagine so. That's most likely why they've bought them - to gain another "legal" weapon to prevent superior hardware from competitors being sold.

 

[terrisus]

$3 Billion?

Gee... That's quite a deal...
I mean... That's like... 7 Million pairs of Beats headphones...

 

[AHA-Lambda]

I still can't wrap my head around why :/

Same, it doesn't seem to make much sense :/

 

[strafer]

straight outta compton

 

[Blackhead]

Is there a list of pundits who said the deal was dead? Time for some claim chowder

 

[-tetsuo-]

Match made in heaven

"Beats' profit margins in the headphone market may be substantial. A pair of its high-end headphones retail for as much as $450, but production costs across the brand run only about $14 a pair, according to The New York Times. Apple said the deal would add to earnings in fiscal 2015."

Wut

 

[funkystudent]

This just seems like apple going "we have all this money and should do SOMETHING with it".

The acquisition just seems pointless.

 

[riotous]

I feel like I'm missing something here. I just don't get it.

High margin audio product that already sells really well at Apple stores, not to mention everywhere else.

Highly popular brand to market all of their products alongside.

I think the most confusing thing is why people are so confused about the purchase. What's really confusing is that Apple has been NOT purchasing companies like Beats in the past.

 

[Hari Seldon]

This is good news, Apple could have payed a fraction of that and bought an actually good headphone company and then ruined it by jacking up prices even more.

 

[Zalman]

2.6 billion... in cash...

Dre is the real winner here.

 

[jelly]

Next Apple keynote

"Beats will sound better on Apple hardware thanks to magic."

 

[Pathos]

Dre won
Apple lost

 

[Dai101]

 

[Maninthemirror]

I wonder how the investors will feel if the beats audio cool factor dies down by 2015 and investors ask for Tim Cook's head

 

[Slayven]

Oh the apple stans going to be mad. Off to Macrumors to mine salt.

 

[Gorillaz]

Now people get to pay more for their iphones

They are already paying more then they should for them so why not

 

[Konka]

Wow y'all see to be pretty out of touch with the beats Market if you aren't understanding why te brand is valuable.

 

[TangoAlphaLima]

They also had executives who ran the brand to make it cool and hip. Those people are now Apple employees.

Yeah, that too. I'd imagine that Apple will expand the brand a lot and incorporate Beats into its iPod line.

 

[kingocfs]

Goddamn.