smackababy
Lifer
- Oct 30, 2008
- 27,024
- 79
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They're a private company and don't really post financials but I believe they do 10 figure revenue and 9 figure profits annually. The headphone brand is well established, you can call it a "Chinese headphone repackaging company" but how many kids you know want one? It's fashionable to wear the headphones. Plus, Apple is purchasing the company more so for Beats Streaming service rather than the headphones. The built technology, patents are all already there and the Beats music service could've developed into a big iTunes competitor.
Using analytics on iPhone usage (sending data back to Cupertino), they probably know that the landscape is starting to shift towards more streaming than downloading. Lots of Spotify usage, etc.
iTunes Radio is awful. Their streaming service is a failure, as of right now. Spotify is estimated to have around 4 million users with Pandora being the giant at 250 million. Beats had more than Apple, and with it being a paid only service, only had around 500,000. However, Apple getting this service is a good thing for them, as it is lightyears ahead of their service.