Also, everyone who is saying Beats headphones suck, etc. are missing the point. Their target audience is the teen/early 20's crowd. The general layman who is not an audiophile and hears the difference between these and a generic pair of headphones and thinks they sound great. THOSE are the ones who keep giving them money. As we have seen countless times before, Brand>Quality.
Its official: Apple just bought Beats for $3 Billion
- Thread starter Maninthemirror
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thefunkyman
Banned
Because people who care more about a brand name on a pair of headphones than how they sound are gullible IMO. Suckered in by advertising and fashion trends. You can buy a pair of well-built, MUCH better sounding headphones for less, but they'll have a brand name on them that isn't "cool".
Yep, and all for what amounts to sofa cushion change to Apple. It's a good deal.
DoktorEvil
Banned
If the Beats are leveraged and sold exclusively through Apple's retail channel, they'll make that money back in 3-5 years.
VanquishUK
Member
Why is your personal, subjective metric more valid than anyone else's?
DataStream
Member
I believe the "across the brand" means the median price of all units sold. The $14 likely applies to the solo HD ($169). The cost on their new studios ($450) is higher, as they had higher R&D costs and more custom components.
Why would Apple do that? That sounds like a horrible plan. Beats will continue to be sold at all major retailers.
Angelus Errare
Banned
There needs to be a I get Money 2014 Dre mix.
But could they have invested that money to build their own headphones based on their own brand, made a similar return and used the rest of the $3 billion elsewhere?
In the end it doesn't really matter, $3b is nothing to apple and they are just going to horde the money anyway. But if they are going to piss away that much money at least pay their fucking tax bill.
thefunkyman
Banned
Why do you think I'm not allowed to hold an opinion that people are gullible for buying inferior headphones at twice the price of better ones?
BolognaSoup
Member
The "Apple products are just fashion accessories" crowd is going to have a field day with this.
Joel Was Right
Member
I read somewhere Apple sells only 20% of their phones through retail. Most don't want to go to these stores to buy things.
Liu Kang Baking A Pie
Member
Because you sound like a dingus.
Kano on the Phone
Member
Pretty excited to get my "Beads" headphones sold exclusively with my Samsung Galaxy 6.
thefunkyman
Banned
Beats headphones are shit quality when it comes to sound, so if you choose a pair over a better sounding pair just because you care what people who look at your headphones will think, I'd say it's you that's the "dingus".
I get what you are saying but how much money and time do you think apple should invest in this?
I'd rather have jony ive work on something other than headsets. I'd rather apple not spend a year spending money on headsets if they can just buy it especially a company with proven revenues etc.
I really don't think Apple was simply looking at the revenue. It played a factor but they must have bigger plans for Beats and the talent they acquired.
billy beane
Banned
iPhone+Beats is already the most popular hardware combination for the most people when it comes to listening to music. Makes sense to buy the other half.
I didn't suggest you weren't allowed to hold that opinion, I'm just pointing out that it's arrogant, condescending and hypocritical.
Didn't they push the price down to 5 dollars?
Not sure if it's true but Tim cook said to the times that expect big things from beats app in the future. No idea if it was a troll comment on macrumors as I can't find the link.
Also supposedly. Beats subscription dropped to 100 bucks from 120 and has a 14 day trial.
Definitely but the business isn't a money-loser like most other big acquisitions
EXACTLY. This is the point people are missing. They are sitting on a shitload of cash. They take this, keep if for 4 years and then spin out the headphones, they are going to:
a) have made the money back in the Beats revenue over that time
b) had to do little to no work to get a streaming service up and running
c) gotten Iovine, who is going to help out with their media deals
BolognaSoup
Member
From the streets of Compton to being a billionaire! So many bitter ass mofos lol.
https://www.youtube.com/watch?v=GINRxvulm_g
Remember when Jobs used to talk about not caring if he made money, he just wanted to make the best product? I could name literally dozens of headphones that are a better product and value than Beats.
Because he's objectively correct.
I agree, they had 1.3 billion in sales during 2013 and have high profit margins. 3 billion really is not a bad price for the company.
You need to review your dictionary.
FantasticMrFoxdie
Mumber
speculawyer
Member
Apple has jumped the shark.
Really? Buying some fad headphone company?
I don't get it. This will go down as a bad investment.
Really? Buying some fad headphone company?
I don't get it. This will go down as a bad investment.
Agreed. I wonder if anyone here invests in the stock market and look at some of the crazy valuations some companies have.
If there's one company I'd bet on being cheap and not overspend on companies it's apple. Apple doesn't just buy companies without a plan or over pays.
As an investor in apple I trust apple knows what they are doing and have looked at the financials and paid a reasonable price.
Delusibeta
Banned
Dr Dre's just made a billion in cash, while Steve Jobs is currently doing 60 RPM in his grave.
Angelus Errare
Banned
If people want Beats because they like the look, or they like what they think people think about Beats owners, that's a perfectly fine reason to own them.
Personally my headphones are AKG, but I don't see the problem with compromising audio quality for other things someone values.
As for why Apple bought them, don't they have constant pressure about their warchest from investors? They had to make a big purchase at some point.
Should have bought Nintendo though.
Personally my headphones are AKG, but I don't see the problem with compromising audio quality for other things someone values.
As for why Apple bought them, don't they have constant pressure about their warchest from investors? They had to make a big purchase at some point.
Should have bought Nintendo though.
Tyrese is not allowed to be publicly seen with Dr. Dre anymore.
davepoobond
you can't put a price on sparks
iPhone with beats headphones
I wonder if the classic iPod white styles will still be around
I wonder if the classic iPod white styles will still be around
Skullcandy.
DataStream
Member
the $14 figure is stated "across the brand" and from my understanding does not reflect the cost of the studios.
Kano on the Phone
Member
They're called OGs
Samsung is just terrible.
Holy shit.
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