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Apple Buys "Beats By Dre" for $3 Billion (1 Viewer)

They essentially paid 3 billion to appear cooler.
:lol:

Somebody doesn't get it....
This is like saying Google spent 3 Billion to buy a thermostat. Very uninformed.

BTW Beats generated 1.2 Billion in earnings last year. Apple is paying 2.2x earnings for 'headphones' while Google paid 12x earnings for Nest.
You really have to look at the big picture for Nest. It isn't as cut and dry as earnings. Google has plans to integrate advertising into just about all of their products. I don't have a crystal ball, so I don't know what they are going to do, but home security has been mentioned.The difference between Googles acquisition of Nest and Apples acquisition of Beats is that Google bought into a new space. Apple already has a presence in the headphone and online music area.

I guess I am in the minority as a consumer. I'm more interested in what my technological devices can do as opposed to how cool they are perceived.

 
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They essentially paid 3 billion to appear cooler.
:lol:

Somebody doesn't get it....
This is like saying Google spent 3 Billion to buy a thermostat. Very uninformed.

BTW Beats generated 1.2 Billion in earnings last year. Apple is paying 2.2x earnings for 'headphones' while Google paid 12x earnings for Nest.
From the sound of it, Beats has a much healthier profit margin as well. This is such a non story that's only made out to be something b/c its Apple. Worst case, they'll break even, not like they need the revenue.
Besides the paltry 2.2x earnings being paid, Beats' revenue growth is rumored to be somewhere in the 30-40% range.

Apple is stealing the company from Dre, who just sees a big payday, and Lovine, who is being offered an exec seat at Apple.

 
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But Beats are excellent headphones, certainly top of the consumer market for quite some time..
WRONG.

They are all bass and nothing else. Those that think Beats are "excellent" have not worn a pair of Sennheiser HD-280s, which you can get for over half the price of Beats and have "excellent" quality.
Yeah I have to agree here. Beats are pretty widely known to be extremely overpriced for the sound quality.
Sadly, I owned a pair for a while and within 6 months, the right earpiece shorted out on me and they went to the garbage. Picked up the aforementioned Sennheisers and have been happy since.

 
Quez said:
Great time to sell. There are hundreds or thousands of competing high end headphones now. There are also hundreds of competing online music services.
Except that Beats aren't really high-end, despite the marketing.
Maybe you now nothing about sound quality and headphones, or maybe you've never tried Beats headphones, or maybe you just assumed they were crap marketed to kids who want to be flashy with the only thing going for them is the Dr Dre name..But Beats are excellent headphones, certainly top of the consumer market for quite some time..
This seemed like a pretty good review process and Beats came in pretty low.http://time.com/74886/best-headphones/
By "pretty good review process" you mean, "they did very little to explain their review process"

 
all of these bad decisions are really going to destroy this company in the long run.
To me it's less about whether or not this decision is good. It's more about the direction they're going to take the company with new leadership. This is something I wouldn't have seen them doing in the past. Maybe I'm wrong. It just feels to me like a departure for them. Doing it once could be an outlier. It'll be interesting to see if they fall into acquisition mode, though.

 
I'm nonplussed as to why these headphones have become such a big thing of late. :shrug:
Dre and Iovine (plus the rest of the team) are a marketing machine.

Acquiring them as part of the deal isn't an insignificant factor.
No, I get why Apple is interested in BBD. I just don't get why people are so interested in High End Headphones.
Status. Why buy a $200 pair of ray bans when you can get something for $30 that does and looks exactly the same?

 
They essentially paid 3 billion to appear cooler.
:lol:

Somebody doesn't get it....
This is like saying Google spent 3 Billion to buy a thermostat. Very uninformed.

BTW Beats generated 1.2 Billion in earnings last year. Apple is paying 2.2x earnings for 'headphones' while Google paid 12x earnings for Nest.
You really have to look at the big picture for Nest. It isn't as cut and dry as earnings. Google has plans to integrate advertising into just about all of their products. I don't have a crystal ball, so I don't know what they are going to do, but home security has been mentioned.
Nest has amazing potential. Like Google's self driving car and other ventures, this isn't about advertising or search. Google wants to control everything in your home, with ambitions to be even the next big Utility power player.

There's a great article today about how Google's Nest plays into their utilities ambition: http://www.bloomberg.com/news/2014-05-29/tv-web-phone-electricity-a-new-threat-to-utilities.html.

 
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Besides the paltry 2.2x earnings being paid, Beats' revenue growth is rumored to be somewhere in the 30-40% range.

Apple is stealing the company from Dre, who just sees a big payday, and Lovine, who is being offered an exec seat at Apple.
Bingo.

 
Quez said:
Great time to sell. There are hundreds or thousands of competing high end headphones now. There are also hundreds of competing online music services.
Except that Beats aren't really high-end, despite the marketing.
Maybe you now nothing about sound quality and headphones, or maybe you've never tried Beats headphones, or maybe you just assumed they were crap marketed to kids who want to be flashy with the only thing going for them is the Dr Dre name..But Beats are excellent headphones, certainly top of the consumer market for quite some time..
This seemed like a pretty good review process and Beats came in pretty low.http://time.com/74886/best-headphones/
By "pretty good review process" you mean, "they did very little to explain their review process"
No need to take it personal that a product you like was reviewed poorly. 75% expert reviews (CNET, Wired, TechCrunch, What HiFi, Good Gear Guide, PC Mag)

25% specs and features (frequency, sensitivity, noise canceling, etc.)

 
The iPhone hasn't been the best smartphone since the original iPhone was released, and they have seemed to do alright, so I suppose they can have success in selling overpriced headphones.

 
Quez said:
Great time to sell. There are hundreds or thousands of competing high end headphones now. There are also hundreds of competing online music services.
Except that Beats aren't really high-end, despite the marketing.
Maybe you now nothing about sound quality and headphones, or maybe you've never tried Beats headphones, or maybe you just assumed they were crap marketed to kids who want to be flashy with the only thing going for them is the Dr Dre name..But Beats are excellent headphones, certainly top of the consumer market for quite some time..
This seemed like a pretty good review process and Beats came in pretty low.http://time.com/74886/best-headphones/
By "pretty good review process" you mean, "they did very little to explain their review process"
No need to take it personal that a product you like was reviewed poorly.75% expert reviews (CNET, Wired, TechCrunch, What HiFi, Good Gear Guide, PC Mag)

25% specs and features (frequency, sensitivity, noise canceling, etc.)
ooof

 
all of these bad decisions are really going to destroy this company in the long run.

To me it's less about whether or not this decision is good. It's more about the direction they're going to take the company with new leadership. This is something I wouldn't have seen them doing in the past. Maybe I'm wrong. It just feels to me like a departure for them. Doing it once could be an outlier. It'll be interesting to see if they fall into acquisition mode, though.
I get what you are saying regarding buying v. home grown.

But, they are way behind the streaming music wave. That's more emblematic of a problem than the attempted fix, imo. Fix seems like a "oh #### this is slipping away" jump into the market. Not sure home growing it could have made a dent at this point.

 
But Beats are excellent headphones, certainly top of the consumer market for quite some time..
WRONG.

They are all bass and nothing else. Those that think Beats are "excellent" have not worn a pair of Sennheiser HD-280s, which you can get for over half the price of Beats and have "excellent" quality.
Yeah, I'm a fan of Sennheiser as well.
One of the best headphone makers for an audiophile. But not many kids, or adults, have even heard the name Sennhieser.

 
But Beats are excellent headphones, certainly top of the consumer market for quite some time..
WRONG.

They are all bass and nothing else. Those that think Beats are "excellent" have not worn a pair of Sennheiser HD-280s, which you can get for over half the price of Beats and have "excellent" quality.
Yeah, I'm a fan of Sennheiser as well.
One of the best headphone makers for an audiophile. But not many kids, or adults, have even heard the name Sennhieser.
So what? Do they have access to Amazon?

 
How was this not a thread until today? This story broke weeks ago.

This deal just goes to show that branding is everything.

 
How was this not a thread until today? This story broke weeks ago.

This deal just goes to show that branding is everything.
Funny story. Supposedly Apple wasn't close to pulling the trigger on the 3.2BB offer yet when someone from the Beats side bragged about it during a 3 day coke bender*.

Apple was furious at the leak and shaved 200MM off the deal to save face. Dre and Lovine took their spanking and still signed the deal anyways. Shows how much leverage Apple has in this deal.

* coke bender may or may not have happened.

 
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But Beats are excellent headphones, certainly top of the consumer market for quite some time..
WRONG.

They are all bass and nothing else. Those that think Beats are "excellent" have not worn a pair of Sennheiser HD-280s, which you can get for over half the price of Beats and have "excellent" quality.
Yeah, I'm a fan of Sennheiser as well.
One of the best headphone makers for an audiophile. But not many kids, or adults, have even heard the name Sennhieser.
But do they come in flashy colors? Amazon only shows them in black..

 
How much is Apple valued at right now?

God it's comical how much money they have. I heard they are possibly going to integrate Beats into their new phones to replace their current ####ty headphones.
I really like my buds. The ones I got with my iPhone 5 are significantly better than the ones I have from the 4S.
Really? I have the latest and didn't notice a difference.
The one thing I noticed is that the newer ones have better sounding bass.

 
How much is Apple valued at right now?

God it's comical how much money they have. I heard they are possibly going to integrate Beats into their new phones to replace their current ####ty headphones.
I really like my buds. The ones I got with my iPhone 5 are significantly better than the ones I have from the 4S.
Really? I have the latest and didn't notice a difference.
The shape of the new bud is much more ergonomic, stays in place a lot better and the sound seems improved.
 
How much is Apple valued at right now?

God it's comical how much money they have. I heard they are possibly going to integrate Beats into their new phones to replace their current ####ty headphones.
I really like my buds. The ones I got with my iPhone 5 are significantly better than the ones I have from the 4S.
Really? I have the latest and didn't notice a difference.
The one thing I noticed is that the newer ones have better sounding bass.
Yup, especially when I realized weeks after I had them that I was wearing the backward :bag:

 
Has anybody here used Beats streaming? I've never used spotify but it crushes pandora and iTunes Radio. Can type in any album you want to hear and it's there. You want a mix of music? It's there. Can create your own library, can have multiple accounts for one price...it pretty much does everything.

I can't imagine why any music fan would dislike it. Costs the price of one new album a month....which you no longer have to pay for because Beats will have it the same day.

Edit: no commercials, no pauses, nothing. I love it. I would probably pay double to be honest.

 
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Quez said:
Great time to sell. There are hundreds or thousands of competing high end headphones now. There are also hundreds of competing online music services.
Except that Beats aren't really high-end, despite the marketing.
Maybe you now nothing about sound quality and headphones, or maybe you've never tried Beats headphones, or maybe you just assumed they were crap marketed to kids who want to be flashy with the only thing going for them is the Dr Dre name..But Beats are excellent headphones, certainly top of the consumer market for quite some time..
This seemed like a pretty good review process and Beats came in pretty low.http://time.com/74886/best-headphones/
By "pretty good review process" you mean, "they did very little to explain their review process"
No need to take it personal that a product you like was reviewed poorly.75% expert reviews (CNET, Wired, TechCrunch, What HiFi, Good Gear Guide, PC Mag)

25% specs and features (frequency, sensitivity, noise canceling, etc.)
Reviewed poorly in an article that vaguely explains it's review process that is followed with an article about Brad Pitt being punched in the face at a movie review.. I'm sorry, I don't go to entertainment news for my technical reviews, maybe you do, guess that's your prerogative..

 
Has anybody here used Beats streaming? I've never used spotify but it crushes pandora and iTunes Radio. Can type in any album you want to hear and it's there. You want a mix of music? It's there. Can create your own library, can have multiple accounts for one price...it pretty much does everything.

I can't imagine why any music fan would dislike it. Costs the price of one new album a month....which you no longer have to pay for because Beats will have it the same day.

Edit: no commercials, no pauses, nothing. I love it. I would probably pay double to be honest.
Never used it but with the summer here, I'm interested. I have the Beats beatbox speakers but I just pair it to my phone and listen to Sirius XM when I'm outside grilling or at the pool.

 
Quez said:
Great time to sell. There are hundreds or thousands of competing high end headphones now. There are also hundreds of competing online music services.
Except that Beats aren't really high-end, despite the marketing.
Maybe you now nothing about sound quality and headphones, or maybe you've never tried Beats headphones, or maybe you just assumed they were crap marketed to kids who want to be flashy with the only thing going for them is the Dr Dre name..But Beats are excellent headphones, certainly top of the consumer market for quite some time..
This seemed like a pretty good review process and Beats came in pretty low.http://time.com/74886/best-headphones/
By "pretty good review process" you mean, "they did very little to explain their review process"
No need to take it personal that a product you like was reviewed poorly.75% expert reviews (CNET, Wired, TechCrunch, What HiFi, Good Gear Guide, PC Mag)

25% specs and features (frequency, sensitivity, noise canceling, etc.)
Reviewed poorly in an article that vaguely explains it's review process that is followed with an article about Brad Pitt being punched in the face at a movie review.. I'm sorry, I don't go to entertainment news for my technical reviews, maybe you do, guess that's your prerogative..
Again, it's ok. You don't need to get defensive about it. It's not like I quoted your post with the word "wrong" in font size 28.

 
Has anybody here used Beats streaming? I've never used spotify but it crushes pandora and iTunes Radio. Can type in any album you want to hear and it's there. You want a mix of music? It's there. Can create your own library, can have multiple accounts for one price...it pretty much does everything.

I can't imagine why any music fan would dislike it. Costs the price of one new album a month....which you no longer have to pay for because Beats will have it the same day.

Edit: no commercials, no pauses, nothing. I love it. I would probably pay double to be honest.
I've used Rhapsody for years. Only thing it doesn't have (as compared to others) is sharing (as far as I know).

 
I'd be interested to know how many people pay for streaming music services. I use Pandora, but just the free version. I would think with cell phone carriers getting rid of unlimited data, streaming music on your phone isn't as appealing as it used to be. But I could be wrong.

 
I'd be interested to know how many people pay for streaming music services. I use Pandora, but just the free version. I would think with cell phone carriers getting rid of unlimited data, streaming music on your phone isn't as appealing as it used to be. But I could be wrong.
I've never used Pandora because of the amount of commercials. I've used Sirus for years. Yes there's a monthly fee but it's really nothing compared to how annoying commercials between songs would be when I have a bunch of people over.

 
I'd be interested to know how many people pay for streaming music services. I use Pandora, but just the free version. I would think with cell phone carriers getting rid of unlimited data, streaming music on your phone isn't as appealing as it used to be. But I could be wrong.
I've never used Pandora because of the amount of commercials. I've used Sirus for years. Yes there's a monthly fee but it's really nothing compared to how annoying commercials between songs would be when I have a bunch of people over.
sirius really is a different beast b/c of all the talk shows and specific band channels where you can get a lot of unique content

 
I'd be interested to know how many people pay for streaming music services. I use Pandora, but just the free version. I would think with cell phone carriers getting rid of unlimited data, streaming music on your phone isn't as appealing as it used to be. But I could be wrong.
I've never used Pandora because of the amount of commercials. I've used Sirus for years. Yes there's a monthly fee but it's really nothing compared to how annoying commercials between songs would be when I have a bunch of people over.
I use Spotify (free version only) and now that they allow me to play my playlists thru my iPhone, I use it even more. It does still suck when an Advil commercial is thrown in there every now and again. The worst was around tax time and the H&R Block ads were running.

A billion... with a B

 
I'd be interested to know how many people pay for streaming music services. I use Pandora, but just the free version. I would think with cell phone carriers getting rid of unlimited data, streaming music on your phone isn't as appealing as it used to be. But I could be wrong.
On the contrary.... music streaming services are seeing considerable growth right now. I am a spotify subscriber.

 
I'd be interested to know how many people pay for streaming music services. I use Pandora, but just the free version. I would think with cell phone carriers getting rid of unlimited data, streaming music on your phone isn't as appealing as it used to be. But I could be wrong.
I subscribe to the Spotify service. At the time I started, Spotify on a mobile device was only available to Premium, so that's how I got started.

Spotify has the ability to flag playlists or albums for offline usage, so I have a few playlists with several hundred songs that are always on my phone. It's really easy. After years of hoarding MP3 files, I never bothered loading my latest phone with any MP3 music and use Spotify exclusively and I haven't missed MP3/itunes for a second.

I used to use Pandora and if you just want to put on some 80s music in the background or what not, it's pretty good. If you want new music or have the desire to listen to album ___ by artist ____, Spotify absolutely crushes Pandora.

 
Has anybody here used Beats streaming? I've never used spotify but it crushes pandora and iTunes Radio. Can type in any album you want to hear and it's there. You want a mix of music? It's there. Can create your own library, can have multiple accounts for one price...it pretty much does everything.

I can't imagine why any music fan would dislike it. Costs the price of one new album a month....which you no longer have to pay for because Beats will have it the same day.

Edit: no commercials, no pauses, nothing. I love it. I would probably pay double to be honest.
Never used it but with the summer here, I'm interested. I have the Beats beatbox speakers but I just pair it to my phone and listen to Sirius XM when I'm outside grilling or at the pool.
If you have an android device check out Google Play radio. It's the same as spotify.

 
Quez said:
Great time to sell. There are hundreds or thousands of competing high end headphones now. There are also hundreds of competing online music services.
Except that Beats aren't really high-end, despite the marketing.
Maybe you now nothing about sound quality and headphones, or maybe you've never tried Beats headphones, or maybe you just assumed they were crap marketed to kids who want to be flashy with the only thing going for them is the Dr Dre name..

But Beats are excellent headphones, certainly top of the consumer market for quite some time..
Being at the top of the consumer market <> excellent headphones. It means excellent marketing in this case.

 
How much is Apple valued at right now?

God it's comical how much money they have. I heard they are possibly going to integrate Beats into their new phones to replace their current ####ty headphones.
I really like my buds. The ones I got with my iPhone 5 are significantly better than the ones I have from the 4S.
Yeah....I was really surprised by the quality of their buds. Don't know about their headphones....didn't even know they made them. But I'd be shocked if they didn't demand a revamp of the Beats headphones....marketing leads you to believe they are way better than they are. IMO, they are average at best with a premium price tag.

 
How are these streaming services paying the label for the rights to albums? I mean how much does it cost?

If nas puts out a new album now I have no incentive to go buy it when Beats (or whatever) will have it the same day. Are they paying hundreds of thousands of dollars for each album? They can't be.

 
I'm nonplussed as to why these headphones have become such a big thing of late. :shrug:
Dre and Iovine (plus the rest of the team) are a marketing machine.

Acquiring them as part of the deal isn't an insignificant factor.
No, I get why Apple is interested in BBD. I just don't get why people are so interested in High End Headphones.
SERIOUSLY???????
YES!!!!!!!!!!

 

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