Even Apple overpay for Beats.

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Rakehellion

Rakehellion

Lifer
Jan 15, 2013
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Looks like they're buying the Beats Music service to integrate with iTunes radio. iTunes is still dominating the online music world, so it looks like they're trying to snatch this one up before it gets too big.
 
TwiceOver

TwiceOver

Lifer
Dec 20, 2002
13,544
44
91
Rakehellion said:
Looks like they're buying the Beats Music service to integrate with iTunes radio. iTunes is still dominating the online music world, so it looks like they're trying to snatch this one up before it gets too big.
Click to expand...

I don't think anyone, even apple, was worried about that happening.

Mog couldn't make it, so Beats buys it, look where that went. It's like those stores that go out of business then someone puts a similar store in the same location as if somehow changing the name is going to make a difference.

I have a couple friends at the gym who wear those big ass Beats headphones, long ass cord dangling all over the place waiting to get snagged on everything. I always like to screw with them. "Hey, how's that advertising sound?"
 
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_Rick_

_Rick_

Diamond Member
Apr 20, 2012
3,943
69
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Apple's core business is brand value.
Brand value is the only thing that Beats has, and by being able to sell the Beats earbugs to the iphonies, they can make money twice on the same sucker.
Makes perfect sense to me.
 
PliotronX

PliotronX

Diamond Member
Oct 17, 1999
8,883
107
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Jesus chrimeny what a lesson in name branding. This is why Dre doesn't have to perform any more as he can survive on royalties. While fitty cents vitamin water floundered a bit, beats just keeps growing. Good thing they are not actually the best choice of headphones for their price, I'd feel like a douche wearing them.
 
P

PokerGuy

Lifer
Jul 2, 2005
13,650
201
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Beats doesn't really hold any particular value as a product, there are plenty of comparable products at comparable (or better) prices.... but what beats does have is a strong brand name with a lot of brand loyalty. Lots of dummies will vastly overpay for the product because it says "beats" on it. Seems like perfect synergy with apple's products.
 
edro

edro

Lifer
Apr 5, 2002
24,326
68
91
Fvck... Now all my apple products will start forcing beats down my throat.
 
ultimatebob

ultimatebob

Lifer
Jul 1, 2001
25,134
2,449
126
Makes sense to me... if you're the type of person who's willing to pay $750 for an unlocked 64 GB iPhone5S, you're probably also the type of person who's willing to pony up an extra $100 for special BeatsAudio earbuds for it.

I hope that we at least get a nice looking iTunes skin out of this. That program is pretty bland looking.
 
SaurusX

SaurusX

Senior member
Nov 13, 2012
993
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It's funny, because HTC used to own a large portion of the Beats business. I think they sold it off right before it blew up. Idiots.
 
halik

halik

Lifer
Oct 10, 2000
25,696
1
0
desura said:
At heart, Tim cook is a Compaq man.
Click to expand...
1231363256595_bigPhoto_0.jpg

^Compaq with jbl audio

This. If they keep in him in charge, apple will fade into oblivion.

The demographic that buys beats is orthogonal with the apple customer demo. It's akin to Rolex trying to cross brand with boost mobile or ed hardy; or Rolls Royce pairing up with Asanti. The synergy simply isn't there.
 
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Phoenix86

Phoenix86

Lifer
May 21, 2003
14,644
10
81
PokerGuy said:
Beats doesn't really hold any particular value as a product, there are plenty of comparable products at comparable (or better) prices.... but what beats does have is a strong brand name with a lot of brand loyalty. Lots of dummies will vastly overpay for the product because it says "beats" on it. Seems like perfect synergy with apple's products.
Click to expand...
Was gonna blast you after reading the first sentence because I thought you missed the real value in Beats but you hit the nail on the head.

I'm sure it's overvalued, but this is the logic.
 
L

LookBehindYou

Platinum Member
Dec 23, 2010
2,412
1
81
Well shit, that probably kills any chance of getting Detox from Dre.

"I'm too rich bitch! Fuck it!"
 
W

Wreckem

Diamond Member
Sep 23, 2006
9,493
1,051
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SaurusX said:
It's funny, because HTC used to own a large portion of the Beats business. I think they sold it off right before it blew up. Idiots.
Click to expand...

They bought a controlling interest(50.1%) in 2011 for $309million. Sold all but 24.84% of it in 2012 for $150million. The Founders of Beats asked to by back the remaining 24.84% last fall. HTC profited to the tune of ~$106million. By all accounts thats a great return for a two year investment. Not as good as what could have been. HTC is probably pissed because this deal was probably in the works for awhile and HTC didn't sell their last ~25% until late Dec 2013.
 
MarkXIX

MarkXIX

Platinum Member
Jan 3, 2010
2,642
1
71
All aluminum and glass Beats coming soon with eaRetina quality sound and a custom audio jack format that delivers more beats per millimeter than any other audio device ever.

Good thing I bought my daughter's Beats for her while I was in Afghanistan for $65 so she would finally shut up about her friends who I have never once seen with a pair of Beats on their heads.
 
dr150

dr150

Diamond Member
Sep 18, 2003
6,570
24
81
MarkXIX said:
All aluminum and glass Beats coming soon with eaRetina quality sound and a custom audio jack format that delivers more beats per millimeter than any other audio device ever.

Good thing I bought my daughter's Beats for her while I was in Afghanistan for $65 so she would finally shut up about her friends who I have never once seen with a pair of Beats on their heads.
Click to expand...

On the "Suze Orman Show", some adult called in during the "Can I Afford It" segment, and asked Suze if she could purchase the overpriced $400 Pros.

Suze rolled her eyes/shook her head and firmly denied her request and then questioned her judgement. It was hilarious. :D
 
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