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[FantasticMrFoxdie]

Should have bought Nintendo though.

GAF would have literally imploded

the $14 figure is stated "across the brand" and from my understanding does not reflect the cost of the studios.

I figured the wording on that is suspect but even if $14 is the avg thats insane. Still hoping for a source on those numbers or statement. (tried searching google to no avail)

 

[speculawyer]

Why is your personal, subjective metric more valid than anyone else's?

Because it is NOT subjective. It is OBJECTIVE. We can measure things like frequency response, decibels, roll-off, etc.

 

[CrankyJay]

WTF

They had 156B. It's chump change.

 

[thefunkyman]

I didn't suggest you weren't allowed to hold that opinion, I'm just pointing out that it's arrogant, condescending and hypocritical.

It's none of those things.

Putting the brand name written on a pair of headphones and how they look over and above sound quality is stupid. Also, it's not like all the cheaper, better sounding headphones look like shit or are built really poorly.

If someone asked me what headphones to buy and I recommended a pair other than Beats because they are built great, sound much better, but cost less, I'd call that good consumer advice, not "arrogant, condescending and hypocritical".

If you wasted your money on a pair, I'm sorry to hear that, but a quick bit of research online would have shown you that they simply don't compare to other headphones in the same price range.

 

[Servbot24]

You need to review your dictionary.

Was mainly referring to the second part of his post. Beats are an absolutely horrid value for consumers compared to other products.

The first bit of his post wasn't correct, but I do think that people who wear headphones just for fashion are pretty conceited.

 

[overcast]

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.

Did Dre say that? 2 classic hip-hop albums and the first billionaire in hip-hop.

He earned it, he can celebrate that shit. Good job Dre.

 

[KHarvey16]

Because it is NOT subjective. It is OBJECTIVE. We can measure things like frequency response, decibels, roll-off, etc.

No, it's subjective if that's what you base your purchase on. If someone just wants white headphones it doesn't matter what the frequency response of brand B's black headphones are.

I don't understand why this is difficult for anyone, holy crap.

 

[cdyhybrid]

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?

But why spend the time and brainpower on R&D, marketing, etc. when they can just acquire a brand that has already nailed that AND simultaneously remove what would have been their biggest competition (if they had made their own line) from the picture?

 

[Tobor]

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.

Now that's throwing money away.

 

[Grover Cleveland]

Seeing the pure anger that these headphones cause people is pretty funny.

As if their life depended on other people's purchasing decisions.

 

[entremet]

So.... Samsung to buy Audio Technica for 10B?

Nope. Won't happen. Audio Technica is Japanese.

 

[massoluk]

I'll give you the brand recognition, but since when was Beats "critically acclaimed " according to the press release? :\

 

[Angelus Errare]

Team,

This afternoon we announced that Apple is acquiring Beats Music and Beats Electronics, two fast-growing businesses which complement our product line and will help extend the Apple ecosystem in the future. Bringing our companies together paves the way for amazing developments which our customers will love.

Music is an important part of our lives and our culture. Music has the power to inspire us, to comfort us, and to send our emotions soaring. It brings people together and transcends the limits of spoken language.

Apple’s history in music began with selling Macs to musicians. That remains important to us today, but we also bring music to hundreds of millions of customers with iTunes, which is at the forefront of the digital music revolution. Music holds a special place in our hearts at Apple, and we know that we can make an even bigger contribution to something that is so important to our society. That’s why we have kept investing in music and why we’re bringing together these extraordinary teams — so we can continue to create the most innovative music products and services in the world.

Beats co-founders and music industry pioneers Jimmy Iovine and Dr. Dre will join Apple, along with their team of employees. Jimmy has been on the cutting edge of innovation in the music industry for decades, including as a key partner for Apple in the launch of the iTunes Music Store more than ten years ago. He has produced or collaborated with some of the most popular artists in history, and been an important contributor to the success of the iTunes Store.

Beats Music was built with deep respect for both artists and fans. We think it’s the first subscription service to really get it right. Both Apple and Beats believe that a great music service requires a strong editorial and curation team, and we will continue to expand what we do in those areas. The addition of Beats will make our incredible iTunes lineup even better, extending the emotional connection our customers have with music.

The Beats Music team will report to Eddy. The teams will be getting to know each other better in the weeks ahead, and we are very excited about the possibilities for the future.

Beats Electronics has become the brand of choice for headphones and speakers in both the music and sports world, just five years after its launch. They are among the most popular and highest-rated third-party products sold today in Apple’s retail and online stores. We see an incredible opportunity to bring Apple’s legendary design and engineering capabilities to these popular products under Phil’s leadership.

Please join me in welcoming Beats to Apple. I hope you are as excited as I am about this new chapter in our history.

Tim

.

 

[nullset2]

Well, they´re both brands based around overpriced products and yearly upgrades.

 

[ReAxion]

awww no sentence about Dre. I wanted to hear Tim Cook refer to him as Dr. Dre.

 

[Kano on the Phone]

Well, they´re both brands based around overpriced products and yearly upgrades.

I'm glad someone finally said this,

 

[mackaveli]

Loving this deal more and more I read about it.

http://recode.net/2014/05/28/tim-cook-explains-why-apple-is-buying-beats-qa/

 

[speculawyer]

No, it's subjective if that's what you base your purchase on. If someone just wants white headphones it doesn't matter what the frequency response of brand B's black headphones are.

I don't understand why this is difficult for anyone, holy crap.

Because this is what he said:

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".

And you said this:

Why is your personal, subjective metric more valid than anyone else's?

Performance as measured by scientific measurements and price are both OBJECTIVE.

Now if you want to defend the proposition that there is nothing wrong with paying more and getting less, that's fine. I think most people would say that is not a good move. But people can spend their money however they'd like. But there is also nothing wrong with people saying they are being gullible for paying more and getting less.

 

[KHarvey16]

It's none of those things.

Putting the brand name written on a pair of headphones and how they look over and above sound quality is stupid.

Personal judgment no valid than any other.

Also, it's not like all the cheaper, better sounding headphones look like shit or are built really poorly.

But what if someone doesn't like the way they look?

If someone asked me what headphones to buy and I recommended a pair other than Beats because they are built great, sound much better, but cost less, I'd call that good consumer advice, not "arrogant, condescending and hypocritical".

Ok? I don't understand how what you just said related to what we're discussing.

If you wasted your money on a pair, I'm sorry to hear that, but a quick bit of research online would have shown you that they simply don't compare to other headphones in the same price range.

Compare based on what? How are you not understanding this very simple concept?

I don't own beats headphones because I don't want them. I don't value looks or brand recognition, but have somehow found it within myself not to trip over myself trying to justify talking down to those people that do. Maybe the rest of my life affords me the luxury of not having to feel superior to others because of their choice of headphones.

Was mainly referring to the second part of his post. Beats are an absolutely horrid value for consumers compared to other products.

The first bit of his post wasn't correct, but I do think that people who wear headphones just for fashion are pretty conceited.

If they are successful the market and those that want them have judged them to be valuable.

 

[ReAxion]

Nope. Won't happen. Audio Technica is Japanese.

Assemble for them, then clone them.

 

[3N16MA]

.

We see an incredible opportunity to bring Apple’s legendary design and engineering capabilities to these popular products under Phil’s leadership.

Now that is good news. Apple designing and hopefully improving the audio quality with the launch of a new product line in the future.

 

[SlowRevolution]

dre should do all the apple presentations from now on.

 

[DoktorEvil]

.

Team,

This afternoon we announced that Apple is acquiring Beats Music and Beats Electronics, two fast-growing businesses which complement our product line and will help extend the Apple ecosystem in the future. Bringing our companies together paves the way for amazing developments which our customers will love.

Music is an important part of our lives and our culture. Music has the power to inspire us, to comfort us, and to send our emotions soaring. It brings people together and transcends the limits of spoken language.

Apple’s history in music began with selling Macs to musicians. That remains important to us today, but we also bring music to hundreds of millions of customers with iTunes, which is at the forefront of the digital music revolution. Music holds a special place in our hearts at Apple, and we know that we can make an even bigger contribution to something that is so important to our society. That’s why we have kept investing in music and why we’re bringing together these extraordinary teams — so we can continue to create the most innovative music products and services in the world.

Beats co-founders and music industry pioneers Jimmy Iovine and Dr. Dre will join Apple, along with their team of employees. Jimmy has been on the cutting edge of innovation in the music industry for decades, including as a key partner for Apple in the launch of the iTunes Music Store more than ten years ago. He has produced or collaborated with some of the most popular artists in history, and been an important contributor to the success of the iTunes Store.

Beats Music was built with deep respect for both artists and fans. We think it’s the first subscription service to really get it right. Both Apple and Beats believe that a great music service requires a strong editorial and curation team, and we will continue to expand what we do in those areas. The addition of Beats will make our incredible iTunes lineup even better, extending the emotional connection our customers have with music.

The Beats Music team will report to Eddy. The teams will be getting to know each other better in the weeks ahead, and we are very excited about the possibilities for the future.

Beats Electronics has become the brand of choice for headphones and speakers in both the music and sports world, just five years after its launch. They are among the most popular and highest-rated third-party products sold today in Apple’s retail and online stores. We see an incredible opportunity to bring Apple’s legendary design and engineering capabilities to these popular products under Phil’s leadership.

Please join me in welcoming Beats to Apple. I hope you are as excited as I am about this new chapter in our history.

Tim

Did not know the two facts at the bottom. 5 years?!

Fuck, Apple didn't take off until Macintosh and even then, that Mac didn't blow away people in sales.

 

[KHarvey16]

Because this is what he said:



Performance as measured by scientific measurements and price are both OBJECTIVE.

Now if you want to defend the proposition that there is nothing wrong with paying more and getting less, that's fine. I think most people would say that is not a good move. But people can spend their money however they'd like. But there is also nothing wrong with people saying they are being gullible for paying more and getting less.

What did he say that in response to? Review the whole exchange. Read what's being written.

 

[speculawyer]

What did he say that in response to? Review the whole exchange. Read what's being written.

He mentioned OBJECTIVE things and then you called them SUBJECTIVE. It is that simple.

 

[ShinobiFist]

Best deal ever. With the juice of Jimmy in the music biz, is a wrap. Apple needs him on board to make iTunes even stronger. Good move Apple, good move.

 

[OmegaFax]

Well, they´re both brands based around overpriced products and yearly upgrades.

Apple and Beats are a perfect match. Monster does for cables to what Beats does for headphones ... that incredible markup.

I really do think Apple's most competitive and incredible products are in their MacBook line. The mobile market is incredibly saturated with phones from LG, Samsung, Motorola, Nokia, and HTC (and many other).

The iPod's ship has sailed. There's still always going to be a market somewhere for dedicated music players but from the sales data Apple releases and the trends in the market, products like the iPod Classic are losing favor to the iPhone.

What's Apple going after with Beats? From what I read (and maybe I'm reading wrong), Beats is literally nothing more than a silk screen logo and a more intense bass setting.

 

[Face it Tiger..]

I think is Apple first major blunder in the post Jobs era. That is way too much money. They will not see a return on that investment.

Within the next 3 years they'll see a positive ROI. beats makes mad profits.

 

[Angelus Errare]

dre should do all the apple presentations from now on.

"I can't watch it this year, I don't even understand what he's saying!"
"I can't relate! to this guy!"
"Who is this thug?!"
"He's a doctor? show me the receipts!"
"Ugh now Apple is a rap company, no thanks!"

 

[KHarvey16]

He mentioned OBJECTIVE things and then you called them SUBJECTIVE. It is that simple.

Is reading a problem? You clearly aren't following and should be embarrassed by this.

 

[Skilotonn]

Anyone that only takes a BOM into account when judging what a product costs to make is doing it wrong.

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.

Oh for sure, but it is still mind-boggling to see.

I doubt that it isn't more than a couple extra dollars of difference between the lowest Beats model and the highest one.

Dre struck big with Beats - like someone said, it isn't even about the quality, Beats is more about fashion and trendiness.

 

[Angelus Errare]

Is reading a problem? You clearly aren't following and should be embarrassed by this.

Why? Cause he's been in a lab with a pencil and pad tryin to get his damn trollin' off?!

 

[breakfuss]

That's what's up Dre. Damn, I'm sure... you never thought that hip hop would take it this far! ♪

(I reserve the right to be corny on this momentous occasion).

 

[Vyer]

.

The Beats Music team will report to Eddy....
We see an incredible opportunity to bring Apple’s legendary design and engineering capabilities to these popular products under Phil’s leadership.

So I guess they'll do something with them. Should be interesting either way.

 

[mackaveli]

Within the next 3 years they'll see a positive ROI. beats makes mad profits.

Why 3 years. It's already accretive in fiscal 2015 which starts in a couple of months for apple?

Isn't that a positive ROI already since it'll increase apples EPS? Meaning it's already profitable.

 

[_Ryo_]

What will Dre's role be at Apple? I didn't see anything in the press release except it saying he will join Apple.

 

[CrankyJay]

Wow there's some salty as fuck people in this thread.

 

[badcrumble]

Beats isn't even trying to compete for the audiophile market. It's an aspirational lifestyle brand and it's been fantastically successful as one. Beats is competing for people who wouldn't bother comparison shopping for headphones and saying "you can buy new headphones, different from the ones that came by default with your phone, and they will have better sound quality than those." This isn't to be condescending, even - I'm just saying that Beats customers want something simple and attractive and that will have noticeably better sound quality than the earbuds they're probably used to. It is *not* for audiophiles and not intended to be.

 

[elektrixx]

This thread is full of people mad they don't own a pair of Beats and must convince themselves their cheap steampunk-lookin' set is great by ranting here.

Popularity is king.

 

[Junior Mint]

dre should do all the apple presentations from now on.

"East coast ain't got no love for Dr. Dre and Snoop Dogg?!"

 

[thefunkyman]

But what if someone doesn't like the way they look?

Buying Beats headphones is comparable to buying a PC for twice as much as a PC that's twice as powerful, just because you like the case. If you want to defend that, fine, but I'd think that person was a fool too.

 

[Angelus Errare]

Dr. Dre and Jimmy Iovine's titles at Apple will simply be 'Jimmy and Dre'

Apple's purchase of Beats is finally confirmed, and we know for sure that Jimmy Iovine and Dr. Dre will be joining the company as well. Unfortunately, their new titles at Apple aren't helping us figure out exactly what they'll be working on — according to The Wall Street Journal, Iovine and Dr. Dre's titles will simply be "Jimmy and Dre." (It's probably safe to assume they'll continue working on Beats projects, as it sounds like the brand and its products will live on with an identity separate from Apple.) We're not certain, but this is probably the first time anyone at Apple has had a one-word title that echoes his name. Just imagine the business cards!

Hey hey hey hey…buy Beats everyday!

 

[railGUN]

Wow there's some salty as fuck people in this thread.

Salty as all fuck. Hilariously so.

 

[Futureman]

I really hope within the next 5 years Apple goes for some Hail Mary idea. They have so much cash. I love Google and all the pots they have their hands in, but the Apple idea doesn't have to be like that. Just one HUGE laser-focused idea.

 

[KHarvey16]

Buying Beats headphones is comparable to buying a PC for twice as much as a PC that's twice as powerful, just because you like the case. If you want to defend that, fine, but I'd think that person was a fool too.

Because you arrogantly, condescendingly and hypocritically think your basis for headphone or PC purchase is somehow superior to theirs.

 

[Angelus Errare]

Buying Beats headphones is comparable to buying a PC for twice as much as a PC that's twice as powerful, just because you like the case. If you want to defend that, fine, but I'd think that person was a fool too.

So just like until recently...like buying Apple laptops?

 

[smokeandmirrors]

Wow there's some salty as fuck people in this thread.

It's an Apple thread. They usually devolve into "LOL OVERPRICED AMIRITE!?!"

Add Beats into the equation and it's just a clusterfuck

 

[RDreamer]

Deal makes complete sense to me. I'm excited for it. Not for the headphones, because I'm cool with my Senns. I'm excited for the possibilities of Beats Music. I've been subscribed to MOG for a while now, and they're going to close up and migrate to Beats Music. As far as I know, it's the same people. MOG was way better than spotify in the way I used it, and Beats probably will be. Only reason I haven't switched yet is because they didn't have last.fm support. Hopefully they still get that.

But yeah, the sale makes sense from all avenues. From a brand standpoint Beats are big. They've got hip executives that get to join Apple. They already were making bank, and they were already one of the highest sold items in Apple's own store. Why would you not want to just buy that and get ALL of that profit under your roof if you're Apple? With full force behind them, they'll sell even more and you get more profit.

 

[pxleyes]

Great move by Apple and a cheap acquisition.

 

[bengraven]

So does this mean they're going to patch out the Beats on my Android...ha