Apple in talks for $3.2bn Beats deal

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It's wearables guys. Everyone missed the logic behind the move.
 
Game controllers do $1 billion+/year in revenue? Madcatz had less than $130 million revenue last year, and they don't make it exclusively to 1 system.

Madcatz are a very tiny provider for all the systems they make.

If handled competently the iOS controller market should have been worth a billion easily, yes.
 
Madcatz are a very tiny provider for all the systems they make.

If handled competently the iOS controller market should have been worth a billion easily, yes.
I don't think it is possible with the small market size and long replacement cycle. Even the ubiquitous $40 Smart Cover is estimated to contribute less than $800 million to Apple's margins. If you want to present me with a business plan to invest in this "easy" $1 billion opportunity, I'm very interested.

I think Ether_Snake makes a good point about wearables. There have been few companies able to convince so many mainstream consumers to wear expensive electronics.
 
So apple headphones won't be a piece of shit anymore? Hope they don't charge separately now

Not sure why they would want a streaming music service though. I don't think I'll ever not use spotify
 
The amount of Apple hate in this thread is hilarious. Stay salty.

Still dont understand why Apple wants to buy Beats when they could probably have come out with their own line that would crush them. I'd rather they picked up someone like Dropbox or another tech company.
 
What company wouldn't do this?

Beats did not come up with the concept of advertising.

I'm saying this is the problem many people have with Beats. Skullcandy like quality but they price and advertise like they're much more. They started by parenting with Monster who loves to have some ridiculous descriptions and prices for their products.

I think if they stayed in the Skullcandy category not as many people would care.
 
The amount of Apple hate in this thread is hilarious. Stay salty.

Still dont understand why Apple wants to buy Beats when they could probably have come out with their own line that would crush them. I'd rather they picked up someone like Dropbox or another tech company.

Well it's not like this was the only money have and it's an either/or proposition. They can still acquire other tech companies. Except dropbox isn't selling.
 
Well it's not like this was the only money have and it's an either/or proposition. They can still acquire other tech companies. Except dropbox isn't selling.

Thats true. Just feels like a weird purchase. Then again, Apple has enough cash to buy 20 more Beats if they wanted to.

Apple acquires small companies all the time. I think they bought HopStop and Embark as well as some mapping companies so I hope Apple Maps gets a badass update for iOS 8.
 
Still dont understand why Apple wants to buy Beats when they could probably have come out with their own line that would crush them. I'd rather they picked up someone like Dropbox or another tech company.

This is where I'm confused as well. Apple could have spent the same 3.2 billion and developed both their own direct competitor to Beats headphones and designed a streaming service through iTunes that would have almost instantly had more than 200K users (which is all they're acquiring from Beats).

The only value is in the Beats name and the associated marketing but Apple already has an established name and their own massive marketing force. In all honesty, this report reminds me of Microsoft of the 90's when they went through their major "acquire everything!" phase.
 
I don't get why Apple gets so much flack for being 'overpriced' when something like the Galaxy S5 takes only 250 bucks to make compared to iPhone's 200. Isn't that overpriced too? And hell, that's only cause Apple gets all the parts at a huge discount due to how many they sell.
 
The iPhone is definitely overpriced, it's not that impressive compared to most flagship smartphones

The iPhone starts at $199 with contract. That is the same price or cheaper than other flagship phones. It has the fastest CPU by a longshot and it's GPU is also top of the line.

If you want to ding it for screen size or say that some other phone has a feature set that better fits your specific needs, sure, but to say that it isn't competitive with other flagship phones is simply not true.

I also would point out that Apple is almost entirely responsible for the drop in flagship phone prices in america. When they dropped the iPhone to $199 on contract it was way lower than other flagship phones were priced, even flagship feature phones. They singlehandedly yanked the ceiling for flagship phone prices down by hundreds of dollars.

As to the Beats acquisition, the way I think about it is: Beats is a successful fashion company. In an age where tech companies are trying to crack wearables, a company that figured out how to get people to happily wear giant, conspicuous, pieces of technology on their heads has a certain value. Maybe Beats is the key to breaking through the "Glasshole" barrier.
 
Not directed at anyone specifically at this thread, but just because some people say that Apple is overpriced doesn't mean that they are salty nor hate the company. Sometimes it does, but not everytime.
 
The iPhone starts at $199 with contract. That is the same price or cheaper than other flagship phones. It has the fastest CPU by a longshot and it's GPU is also top of the line.

Those two articles you linked are primarily a comparison between current and previous Apple generation technology.

Granted, the GPU article references a "benchmark" between iOS devices and Android devices. But considering the two platforms run on an entirely different code base and instruction platform; it's like comparing apples to oranges.

Your price argument is relative to your own territory and it's on/off contract pricing structure. Here in the UK, the iPhone has always been, and continues to be overpriced in comparison to other handsets. Both on contract and especially as a "Pay as you go" device.
 
i used the solo HD for quite a while and they were beyond terrible, so is the beats tour and the studios. they feel very fragile, all of them, like they will break with the slightest pressure. the sound quality on the other hand is just plain muddy, there is simply no clarity whatsoever, you might think that they sacrificed this to for a great bass reproduction but in reality the bass is really lackluster, when i bought the sony XB500 i knew what a bass headphone should sound like.
 
I have to say I don't really get the value add here. I mean $3 billion is nothing to Apple, they could make an acquisition like this every quarter and it wouldn't impact their war chest at all, so it's not like a "bad" move or whatever... it's just a confusing one.

Beats' streaming service does not add significant value, and there's no way there's infrastructure or tech there that's useful to Apple. Apple might not have a particularly good streaming service themselves, but they have infrastructure and engineering capacity (IE they could easily build one).

There's nothing about Beats headphones that are notably high quality; does anyone really think that absent this acquisition, Apple couldn't build headphones in the product categories that Beats does?

The brand could be valuable, it appears to have pretty significant pull among teens to twentysomethings, but it just seems a little bit like a weird fit for Apple, which basically never acquires external products and keeps their external branding. I think if Apple was selling Beats as Beats, that would be a big change for the company.
It's absolutely for the brand. Of course Apple could build their own headphones as good or better than Beats if they wanted. But people aren't buying Beats for the quality. Not that the quality is shit. It's decent if overpriced. But Beats managed to become the default mainstream standard in a highly crowded headphone industry. You can buy better Senns, AKGs, etc at cheaper prices, but kids aren't asking their parents for those, because those aren't what they see all the athletes and celebrities wearing.

And you're right, this isn't like Apple to buy and use another brand instead their own. I wonder if this would've happened if Jobs were still alive.
 
This is where I'm confused as well. Apple could have spent the same 3.2 billion and developed both their own direct competitor to Beats headphones and designed a streaming service through iTunes that would have almost instantly had more than 200K users (which is all they're acquiring from Beats).

The only value is in the Beats name and the associated marketing but Apple already has an established name and their own massive marketing force. In all honesty, this report reminds me of Microsoft of the 90's when they went through their major "acquire everything!" phase.

It really is a mind boggling acquisition. I mean yeah, Beats has insane margins but just how much can you grow it? And yeah Beats Music has a really low amount of subscribers too. 3.2b? Ehhh.

Do they hold any specific patents? I just dont get it.
 
ITT: People learn that Apple prioritize high profit margin products.

If they are optimistic about the things they can do with the brand, I am curious to know what their plans are.
 
Those two articles you linked are primarily a comparison between current and previous Apple generation technology.

The CPU article I linked talks about how the A& is at least a generation ahead of it's competitors. If you want benchmarks comparisons Anand has those too.

Granted, the GPU article references a "benchmark" between iOS devices and Android devices. But considering the two platforms run on an entirely different code base and instruction platform; it's like comparing apples to oranges.

We are comparing the entire platforms when we talk about value. Who cares if one has more powerful hardware if it can't be utilized by the software. Anand's benchmarks are actually a pretty good representation of real world performance.

Your price argument is relative to your own territory and it's on/off contract pricing structure. Here in the UK, the iPhone has always been, and continues to be overpriced in comparison to other handsets. Both on contract and especially as a "Pay as you go" device.

I apologize if I was unclear, I tried to express that I was talking about the North American market.

Not directed at anyone specifically at this thread, but just because some people say that Apple is overpriced doesn't mean that they are salty nor hate the company. Sometimes it does, but not everytime.

It's more that fact that calling something that sells amazingly well "overpriced" is confusing. From a Econ 101 standpoint, if something sells so spectacularly well the market is signaling that it is most certainly not overpriced.

It's wearables guys. Everyone missed the logic behind the move.

Agreed.
 
Why would they buy it for the brand. They already have a brand: APPLE. And it's way bigger and more cooler than Beats.
Lol no. Maybe 10 years ago. But Apple is a victim of its own popularity. It's so ubiquitous that everyone uses it's products, from kids to 60 year old businessmen to old grannies. Beats is a brand for the young and hip. Apple used to be but quite frankly no kid these days is going to think Apples cool. So this is an attempt by Apple to get that demographic back.
 
Saying that Beats headphones are horrible at any price is being over critical. They're not great headphones but they would be decent enough in a different pricing tier for people who enjoy bass heavy music.

The problem is that Beats markets them like they're the kings of audio quality for any kind of music.

I said that their on ear ones are bad for any price and i’ll stand by that. Their more expensive ones are not terrible but the cost is really high.
 
The headphones will have a glass attachment for AR. You will lower it like a microphone on a headset, which it will also be. Pretty smart move to me since it is public-friendly on day one, unlike Google Glass.
 
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