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Its official: Apple just bought Beats for $3 Billion
- Thread starter Maninthemirror
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Ninja Scooter
Member
Let's throw the revenue data and quarterly sales figures out the window then. Clearly the jig is up.
Hey, I'm not saying it's not a wildly successful product for no reason. I love the design, and I'd be bullshitting if I didn't mention that I appreciate the brand as a gateway into better audio equipment.
I'm just saying that -- at least locally -- people are quickly realizing that it's an overpriced product. That's a hard label to shake when there's easily available $39 imitators in chinatown, and people are absolutely buying those pieces of shit. Why not? They look almost identical, and it's all about the status symbol anyway.
Maybe the Beats name is too big for that to cut too deep into revenue, and maybe Apple has plans to innovate a bit more with the brand, but fakes are an increasingly big problem.
.... Then again, I'm sure Apple already has plans to crack down on shit like this, innovate with newer and more difficult to copy designs, etc.
Simply do to the fact that they are they are the most stylish. The average consumer does not care about the specs of the device. Most of the headphones in this thread don't look nearly as good as beats. But i'd wager they sound way better. I probably wouldn't buy beats unless they got a drastic overhaul in quality, but thats just how it is.
I guess it's like buying a rolex watch. A rolex watch won't tell the time better than one of those timex watches from walmart but its a status symbol. You have people paying over $1000 for watches. At the end of the day apple is a business, which all businesses operate to make a profit.
Why beats? Simply because of its status. It appeals to the same demographic as apple products, really. I already proposed the scenario with college students.
Can't wait to revisit this thread say a year or two from now.
Headphones and a decent amp you aren't potentially over paying. Not to mention the amount of money 'audiophiles' lead you to buy.
I have no idea what you're trying to say, but nice meme I guess.
"OH REALLY, TELL ME MORE"
Dreams-Visions
Member
this shit makes me want Detox with some new lyrics like...TODAY. lol
How epic would it be if they introduced him on stage next week and he talked about what Beats will bring to Apple..."oh and Detox releasing August 22nd".
How epic would it be if they introduced him on stage next week and he talked about what Beats will bring to Apple..."oh and Detox releasing August 22nd".
Calling people dumb for paying $300 for a status symbol? Might as well call the people who spend hundreds buying audio equipment for leisure and more time comparing specs than actually listening to music, dumb as well.
Your analogy is horrible...Rolex watches (aside from telling time) are made from the finest of materials, encrusted in gold and diamonds, and is truly an excellent timepiece. Beats are made of plastic and are (severely) overpriced.
The fact that they are most "stylish" only serves to put it into "Fad" territory..it's only a matter of time before another brand bumps it down because nobody keeps the #1 spot in tech forever.
Find where I called people dumb and quote it please?
PS: I'm not an audiophile, but that's some fantastic strawmanning. Really, goes great with your meme.
Better stay out of tech then, Apple. Too risky.
Terrible analogy.
Status? Everyone can afford an Apple device aside from probably wanting to spend the cash for the computers and even then the Macbook airs are very affordable.
He is wrong, Beats is like a sneakers/clothing brand. They don't cost to make but people want to buy an affiliation with something cool, this is the essence.
So angry lol.
Because you simply don't say it doesn't mean you don't imply it. You're telling me someone able to read your earlier comments can't infer your opinions on those who willingly to buy Beat products?
Doesn't matter if you aren't an audiophile yourself. Their vocal community that they are were the first ones to say something. Their opinions and reviews are the ones that are than likely to sway people into "better audio equipment" as you put in one of your earlier comments. Their opinions are the most "trusted" because why trust the opinion of someone who hasn't spent hundreds or even thousands on audio equipment or isn't a music producer of some sort?
Yeah probably wasn't the best analogy thinking it through in fact it is terrible lol. I hope it is a fad and there is a headphone manufaturer that takes over but as of right now i really don't see it as a bad pick up for apple
CarpeDeezNutz
Member
This is the headset I got right now.
The right one broke off from wear and tear. Left is still going strong (they make them single headset as well btw).
I'm not an audiophile in any sense but those beats headphones feel cheap as fuck. The sony headset have lasted me 10 plus years I plan to buy a new set either sony again or pioneer. I haven't tried djing with beats because I don't want to sink money in a product I don't trust.
Kids are always showing me their beats headphones though so I can see the whole buying it just for the brand.
The right one broke off from wear and tear. Left is still going strong (they make them single headset as well btw).
I'm not an audiophile in any sense but those beats headphones feel cheap as fuck. The sony headset have lasted me 10 plus years I plan to buy a new set either sony again or pioneer. I haven't tried djing with beats because I don't want to sink money in a product I don't trust.
Kids are always showing me their beats headphones though so I can see the whole buying it just for the brand.
Fine, I'll just say it -- I don't think people who buy Beats are dumb. I think they're occasionally misinformed, but certainly not dumb. There are genuine reasons to buy beats, and I respect those reasons.
This opinion doesn't conflict with anything else I've said.
I guess it's easy to win arguments when you tell the other side what their opinion is, though.
You sure about that? You really might want to think about some of the other words that end in -phile.
I'm turning myself in to the hyperbole police.
Not the first big product to make it big on mostly style. In the meantime, the fad (going strong for several years now and only geting bigger after the Apple announcement) has made a fortune and been worth it for those involved.
Why do you hope it's a fad? It has no effect on you and your ability to buy one of dozens of audiophile-geared brands in stores right now. The numerous audiophile brands aren't dumbing down their products and aping Beats either. Only (dumb) rationale is that you don't want others to have something you don't like.
Tim Cook's only mission was to have Jimmy Iovine (closer ties with the music industry) on the team. That was clearly Lord Steve Jobs mission anyway. The headphones, Dr. Dre and Beats Music are all extra perks to the deal.
Good solid deal by Apple. They are in a good position.
Hopefully Jony Ive can added some flavor to the Beats headphones to increase their quality.
Good solid deal by Apple. They are in a good position.
Hopefully Jony Ive can added some flavor to the Beats headphones to increase their quality.
Liu Kang Baking A Pie
Member
How much does Apple have to pay so we don't have to read the same tired jokes about them from 1996?
That horrible comic.
That horrible comic.
It sort of is the consensus, or at least it was. People recognize that they are popular, they also recognized that they are overpriced for the quality of audio that they provide. The only reason there is discussion this long on it is because a few people are taking those statements personal now. Noone cared if you pointed out the obviousness of it 2 months ago. And noone certainly cared about their fledgling streaming service.
This is the thread on the beats streaming announcement.
This is the thread for the launch of Beats Streaming service.
And for fun, heres some Neogaf Beats Headphone review threads long before this buyout:
Beats by Dre. Good gift?
Are Beats Headphones any good?
Beats by Dr. Dre cans... worth it?
And yes, theres plenty of posters in those threads that also posted in this one.
BruiserBear
Banned
It's weird seeing all these people confused about this move. I thought it made perfect sense the moment I heard about it.
A high margin headphone business that has been on a meteoric rise and has a young/hip image, as well as a music streaming business that is just taking off.
The beautiful part of the strategy is that they'll continue iTunes as is for people who still want to buy music, while having the other foot in the streaming business.
A high margin headphone business that has been on a meteoric rise and has a young/hip image, as well as a music streaming business that is just taking off.
The beautiful part of the strategy is that they'll continue iTunes as is for people who still want to buy music, while having the other foot in the streaming business.
Interesting, WSJ says Apple values Beats Music (the streaming service) at <$500M, and Beats Electronics at >$2.5B
http://online.wsj.com/articles/appl...-for-beats-music-streaming-service-1401403287
The valuation of the $10-a-month streaming service, which counts 250,000 paying subscribers, is generous based on its subscriber numbers. Spotify AB, which has 10 million subscribers world-wide, raised $250 million in November at a valuation of $4 billion, or $400 per subscriber. By that measure, Beats would be worth $100 million.
...
Apple never contacted Spotify during the process of acquiring Beats, according to two people familiar with the matter, suggesting that Apple was more interested in Beats for its brand power and star leadership than in acquiring a generic streaming service. A Spotify spokesman declined to comment.
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Apple never contacted Spotify during the process of acquiring Beats, according to two people familiar with the matter, suggesting that Apple was more interested in Beats for its brand power and star leadership than in acquiring a generic streaming service. A Spotify spokesman declined to comment.
http://online.wsj.com/articles/appl...-for-beats-music-streaming-service-1401403287
thefunkyman
Banned
Beats supposedly only has 110,000 subscribers, which is why Apple lowered their offer.
http://nypost.com/2014/05/27/apple-cuts-purchase-price-of-beats/
Sure, but if Spotify is valued at $400, why is Beats Music worth $4,500 per user. That's crazytown.
To my understanding the license agreement Spotify has with music companies does not allow them to keep the same terms after being purchased, where as Beats Music which is based on the even older MOG service can.
FrankieMcGuire
Banned
Apple lol...
AUDIO TECHNICA ATH-M50
One of the best of ALL time.
nuff said.
AUDIO TECHNICA ATH-M50
One of the best of ALL time.
nuff said.
Looks like they did pay too much but, and I know this will shock everyone, not for any of the reasons the haters in this thread have said:
http://www.privco.com/apple-acquire...the-true-financial-story-of-beats-electronics
HI. BILLY MAYS HERE
Banned
Your post is beyond Ignorant and lacks business sense.why buy a generic steaming service for 4 billion ? What they bought a streaming service , hardware and a giant brand recognition for 4 billion ?
thefunkyman
Banned
Apple already has a hugely successful music service, tons of positive brand recognition, and a team of designers that could easily make some decent mid-range headphones that they could sell for $300 a pop at a big mark-up. Sure, they've bought their way into the headphones market, but buying a company that's known for selling mediocre products at largely inflated prices (cue the "just like Apple!" jokes) only devalues their own brand name in many peoples' eyes.
darkhunger
Member
Way overblown. The perceived lack of quality and tech of Beats products are easily solved internally by throwing some of Apple's R&D and marketing money at it. Its no rocket science and plenty of brands have managed to pull it off. No big deal for a cash rich company like Apple.
What is not easily solved internally is creating a brand that (1) is market leader in a growing market segment, especially one that Apple wants to enter into (in terms of premium wearable technology) and (2) appeals to a crowd that Apple should be aspiring for (the teens and young adults that are growing up in a world where Apple is no longer the coolest brand in the block).
As for devaluation of the Apple brand name because they bought Beats? I can't understand how anyone can rationally believe that.
thefunkyman
Banned
Lots of people do. You could see it as Apple saying "we can't compete against this, so we just bought them out" - that in itself devalues them. It's not like they bought them because they couldn't make a competing product due to patents or anything like that. They could have done it, but chose not to even try and step up against them.
All Apple needed to do was make their own headphones and get someone cool to endorse them. Fashion trends come and go and when the Beats fashion trend goes, all that's left is a ton of shitty pairs of headphones and Dr. Dre with a billion dollars in the bank and a big grin on his face.
Liu Kang Baking A Pie
Member
You're making an army of strawmen.
HI. BILLY MAYS HERE
Banned
It's just that easy huh ?
Dat anecdotal evidence and CEO armchairing
Lufiaddict
Member
n/m
darkhunger
Member
Well, Apple's stock price has only been increasing ever since the Beats acquisition leaked, so whatever perceived brand devaluation you are talking about isn't showing up in real life.
Umm no. Just about every headphone manufacturer, good quality or otherwise is trying that approach because of the success of Beats and guess what? Its not that easy to take down a market leader and a first mover like that.
And you're not even considering the cost of developing your own premium headphones, securing the right channels, promoting and advertising the products, and paying your celebrity endorsement, etc, cost of which easily add up to whatever the heck they are paying Beats, PLUS you have to cross your finger and hope that its enough to steal away enough market share from Beats.
And you are still under the incorrect assumption that the quality of Beats headphones isn't something that Apple can easily fix.
Unspeakable Evil
Member
High school and college kids love them
thefunkyman
Banned
When you have Apple's brand recognition and you already know at least something about making headphones, it's probably not that difficult.
Huh? What I posted was not a strawman, because it only takes one person to give a rational explanation for why they think that buying Beats devalues Apple as a brand to refute the other poster's statement. I gave a rational reason in the same post. I merely said that lots of people believe it because, well, they do.Liu Kang Baking A Pie said:
And which of those headphone manufacturers has the brand recognition/power of Apple? None of them.
Yeah, there's no way 3 billion dollars would have covered that, lol.darkhunger said:
Big Baybee
Member
All of my students have them, and I work at a deaf school lol. They love the bass.
darkhunger
Member
Apple's brand recognition in manufacturing headphones is worse than Beat's.
"Probably" not difficult? lol.
What you said is far from rational. You're saying that you can somehow assign a value to "we can't compete against this, so we just bought them out". Just think about that for a second.
I can say they all have better reputation in manufacturing headphones than Apple currently does.
Valuation is not just about the money, its about the risk too. Sure Apple probably wouldn't need to spend the $3 billion dollars, but they wouldn't be getting a 100% success rate in capturing >50% of the premium headphone market either.
thefunkyman
Banned
Apple make earbuds that cost £12 on Amazon. It's hardly the same market.
Way to miss the point completely!darkhunger said:
darkhunger
Member
Right. So Apple has zero brand equity in making headphones. Thanks for proving my point.
What point? That Apple has money and power and can throw tons of money into a new headphone business? I understand the point completely, any idiot would, but do you understand mine? Do you understand that there's RISK to cultivate their own headphone business to the degree of Beats? Do you understand that it takes substantial financial investment and MOST IMPORTANTLY, takes time to do so? Both the risk and time factor are enormous considerations that you are outright ignoring.
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