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Apple buys Beats for $3.2 billion

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JackBurton said:
But to get to the original topic, I think it is a dumb move for Apple to purchase Beats. Horrible acquisition. Apple should have focused on their B&W line of headphone. Way more respectable than Beats. I would think Beats would be a better pairing with Samsung. Low end crap.
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Ironic considering Samsungs pack-in ear buds are loads better than the shit apple packs in.
 
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You guys realize in 2013, Beats had over $1.4 billion in revenue, right? Now, they didn't release their profits (private company), but their margins can't be that low on their headphones.


Apple did buy this for the streaming service, and thank god, because iTunes Radio is awful. Apple is going to make money on this deal.
 
smackababy said:
You guys realize in 2013, Beats had over $1.4 billion in revenue, right? Now, they didn't release their profits (private company), but their margins can't be that low on their headphones.


Apple did buy this for the streaming service, and thank god, because iTunes Radio is awful. Apple is going to make money on this deal.
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Gross margin is bananas, but we don't know what net income is like. Dre and Iovine could be getting huge salaries/bonuses for all we know.

If I'm not mistaken, the Beats streaming licenses with the record labels don't automagically transfer to Apple. At least I thought I read that somewhere.
 
manly said:
Gross margin is bananas, but we don't know what net income is like. Dre and Iovine could be getting huge salaries/bonuses for all we know.

If I'm not mistaken, the Beats streaming licenses with the record labels don't automagically transfer to Apple. At least I thought I read that somewhere.
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I'm sure Apple wouldn't have bought it if they couldn't get similar deals Beats has with record labels (which was probably a good one, considering Iovine's position).

Regardless of what Dre adn Iovine were making at Beats, in 2013 they sold around $1.5 billion in units. That is incredible and Apple isn't going to shut off that money machine. This is a company that started in 2006 or so.
 
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