Jump to content
House Price Crash Forum
Sign in to follow this  
interestrateripoff

Apple On Verge Of Paying $3.2Bn For Dr Dre Beats

Recommended Posts

http://www.theguardian.com/technology/2014/may/09/apple-looks-set-to-buy-dr-dre-beats-electronics

Apple is closing in on a deal to buy headphone manufacturer Beats Electronics for $3.2bn (£1.88bn), it has been reported. It would be the California company's largest ever acquisition.

The deal could be announced as early as next week and would include Beats' streaming music service and its audio equipment business.

Beats has developed a strong brand since its launch by rapper Dr Dre and music producer Jimmy Iovine in 2008.

In 2012 50.1% of the company cost HTC $309m. Last September a $500m investment from Carlyle valued the company at more than $1bn.

The Apple deal, news of which was first reported by the FT on Thursday night, would mark a change in the California firm's approach under the leadership of chief executive Tim Cook following the reluctance of Steve Jobs to make large acquisitions. Reporting the company's second-quarter earnings last month, Cook said he was "on the prowl" for companies to buy. He told journalists: "We are not in a race to spend the most or acquire the most. We're in a race to make the best products that enrich people's lives." He added that Apple has purchased 24 companies over the past 18 months.

I think there are better headphone manufactures to buy. Is the company really selling enough high priced headphones to validate a price tag of $3.2bn?

Share this post


Link to post
Share on other sites

I read somewhere they have 55% market share of the expensive headphone market. The way they've convinced people to shell out a fortune on mediocre headphones is pretty impressive, really shows what big brand whores a lot of folk are.

Share this post


Link to post
Share on other sites

It doesn't matter if these headphones are maybe three times (possibly more) overvalued. Isn't it well known that paying far in excess of somethings actual value suddenly makes it worth that amount ;)

Share this post


Link to post
Share on other sites

It doesn't matter if these headphones are maybe three times (possibly more) overvalued. Isn't it well known that paying far in excess of somethings actual value suddenly makes it worth that amount ;)

Indeed, ask any woman who pays £200 for a designer shopping bag...and I really mean...a shopping bag...open top and two handles, no compartments.

Share this post


Link to post
Share on other sites

It doesn't matter if these headphones are maybe three times (possibly more) overvalued. Isn't it well known that paying far in excess of somethings actual value suddenly makes it worth that amount ;)

Its all about the brand to the 18-26 demographic. They will get in to debt (or lose the opportunity to save) to buy these headphones. As I understand it all the headphones do when connected to "beats enabled" equipment is adjust the equalizer to increase the base, something you can easily do yourself but since most people don't know how to use most of the functions on their equipment they won't.

I read somewhere that they are buying beats in order to get more designers. If the quality designers at Apple have left I doubt the team from beats is going to be producing any revolutionary products, Apple is going to tart up the iphone and ipad again and again and bring out a few accessories e.g iwatch. The margins on their accessories are ridiculous - covers cost pennies to make and sell for $20 whilst chargers and headphones are in the same 500% margin category. I think they are over as a genuine innovator. It is truly amazing that just one person can have such a relentless focus to make a large group of people create such great products.Steve Jobs leaves company declines. we've seen it all before and Tim Cook is going to be more of a steady ship rather than an innovator.

Share this post


Link to post
Share on other sites

I do wonder who buys all of these overprices headphones? Mus be the apple crowd.

I'd be willing to guess that there's a large overlap between the top sets of brand-whore consumers.

Share this post


Link to post
Share on other sites

Its all about the brand to the 18-26 demographic. They will get in to debt (or lose the opportunity to save) to buy these headphones. As I understand it all the headphones do when connected to "beats enabled" equipment is adjust the equalizer to increase the base, something you can easily do yourself but since most people don't know how to use most of the functions on their equipment they won't.

I read somewhere that they are buying beats in order to get more designers. If the quality designers at Apple have left I doubt the team from beats is going to be producing any revolutionary products, Apple is going to tart up the iphone and ipad again and again and bring out a few accessories e.g iwatch. The margins on their accessories are ridiculous - covers cost pennies to make and sell for $20 whilst chargers and headphones are in the same 500% margin category. I think they are over as a genuine innovator. It is truly amazing that just one person can have such a relentless focus to make a large group of people create such great products.Steve Jobs leaves company declines. we've seen it all before and Tim Cook is going to be more of a steady ship rather than an innovator.

Apple never innovated - but Jobs was a charismatic genius who was very good at spotting great ideas which hadn't succeeded when implemented by other companies, and then executing them near-flawlessly and making them simple enough to use by anyone. As one of the original company founders, he had the authority to be able to make decisions that got the whole large corporation to swing behind him.

Without Jobs, Apple are purely and simply a luxury brand.

Share this post


Link to post
Share on other sites

Apple never innovated - but Jobs was a charismatic genius who was very good at spotting great ideas which hadn't succeeded when implemented by other companies, and then executing them near-flawlessly and making them simple enough to use by anyone. As one of the original company founders, he had the authority to be able to make decisions that got the whole large corporation to swing behind him.

Without Jobs, Apple are purely and simply a luxury brand.

Agreed. I don't think Apple innovated much at all - if anything.

And their products are never the best in their field - just the ones that happen to appeal to the lowest common denominator.

Share this post


Link to post
Share on other sites

Apple never innovated

Not true. In effect Jobs created the laptop and the smart phone by first doing the ipod.

As a side issue he also made PIXAR great.

Great great man, and seriously flawed. Who isn't?

Share this post


Link to post
Share on other sites

I do wonder who buys all of these overprices headphones? Mus be the apple crowd.

Schools? The public sector?

Generally if there's something that costs £1000 a unit with a perfectly good alternative/substitute for £100, schools will choose the £1000 one. Its not their money, after all.

Share this post


Link to post
Share on other sites

Schools? The public sector?

Generally if there's something that costs £1000 a unit with a perfectly good alternative/substitute for £100, schools will choose the £1000 one. Its not their money, after all.

If only the public sector had bought more RM Nimbus stuff then the world tech sector would have been based here in the UK.

Share this post


Link to post
Share on other sites

Monster bristles at the suggestion that Beats had everything, even anything to do with engineering: "Absolutely not, they don't have any engineers," says Noel. Kevin piles on: "Beats [had] zero [engineering role]," a reality of the deal he says is "undisputed—Monster engineered the sound in Beats by Dre headphones. They told us what they wanted and they approved it, but we made that sound possible."

http://gizmodo.com/5981823/beat-by-dre-the-inside-story-of-how-monster-lost-the-world

Sony-MDR-V6 sound far better at half the price, but they don't have the style.

Share this post


Link to post
Share on other sites

Beats suits Apple perfectly. The Beats users and Apple users have exactly the same mentality.

Agreed. I don't think Apple innovated much at all - if anything.

And their products are never the best in their field - just the ones that happen to appeal to the lowest common denominator.

Apple II was amazing innovation. Fascinating to read about Steve Wozniaks life. Jobs overrated of course.

Share this post


Link to post
Share on other sites

Not true. In effect Jobs created the laptop and the smart phone by first doing the ipod.

As a side issue he also made PIXAR great.

Great great man, and seriously flawed. Who isn't?

The iPod came out well after the Diamond Rio mp3 players and after the Creative NOMAD hard-drive based mp3 player. It was however extremely well made, capable and designed and very easy to use, hence more consumer appeal and was the first really successful mp3 player.

I don't know how you figure that Jobs created the laptop though?

His speciality was spotting great ideas and doing them right (even where other people had failed), not coming up with them.

Share this post


Link to post
Share on other sites

His speciality was spotting great ideas and doing them right (even where other people had failed), not coming up with them.

^ This.

Geeks have a blind spot when it comes to usability: they just don't get how a UX that is obvious to them, might not be obvious to a non-techy. Jobs made a fortune out of this.

Share this post


Link to post
Share on other sites

I've seen these headphones around, but not really paid much attention to them as I thought they were ridiculously priced. I remember seeing some of their earphones in Tesco for around £70 and thinking WTF. Especially as they didn't look much better than ones costing around a fiver.

I still buy Apple laptops but dumped the iPhone several years ago. A £100 Android now does 80% of what an iPhone does without the 4-5X markup. Admittedly not as polished, but I don't use a phone that often to care.

The hassle free nature and near perfect combination of form and function of their laptops still means I'm happy to pay that premium as I am often using one up to 10 hours a day. Fairly chuffed to have picked up a 4 month old Retina Pro for £500 off new price via eBay recently (and also at the price I subsequently got for my old Air). If it lasts at least 3-4 years, we're talking pence per day.

What really baffles me is why more technology companies don't have the attention to detail, form, function and usability that Apple has. It can't be that difficult to get it right. After all, no-one comes away annoyed with niggling problems with most of their household appliances.

I consider myself a bit of techie - but nowadays I just want a computer that works - not one that almost does most of the time.

Edited by StainlessSteelCat

Share this post


Link to post
Share on other sites

http://www.theguardian.com/technology/2014/may/09/apple-looks-set-to-buy-dr-dre-beats-electronics

I think there are better headphone manufactures to buy. Is the company really selling enough high priced headphones to validate a price tag of $3.2bn?

+1

Senheiser + counter others for smaller prices with better quality.Also no professional will use Dr. Dre headgear, but all the kids for some reason find Dre as qool thanks to the marketing

Share this post


Link to post
Share on other sites

Not true. In effect Jobs created the laptop and the smart phone by first doing the ipod.

As a side issue he also made PIXAR great.

Great great man, and seriously flawed. Who isn't?

star_trek_ipad_300.jpg

Screen-shot-2010-03-30-at-3.57.45-PM.png

Did he like Star Trek?

Share this post


Link to post
Share on other sites

Not true. In effect Jobs created the laptop and the smart phone by first doing the ipod.

As a side issue he also made PIXAR great.

Great great man, and seriously flawed. Who isn't?

Now now, don't spoil the fun - Statler and Waldorf are having their say !

Share this post


Link to post
Share on other sites

Apple never innovated - but Jobs was a charismatic genius who was very good at spotting great ideas which hadn't succeeded when implemented by other companies, and then executing them near-flawlessly and making them simple enough to use by anyone. As one of the original company founders, he had the authority to be able to make decisions that got the whole large corporation to swing behind him.

Without Jobs, Apple are purely and simply a luxury brand.

Not true. In effect Jobs created the laptop and the smart phone by first doing the ipod.

As a side issue he also made PIXAR great.

Great great man, and seriously flawed. Who isn't?

You *are* joking, right? :o I bought this in 1999, when did Jobs 'invent' his iPod again?

http://en.wikipedia.org/wiki/Rio_PMP300

He spent his last 15 years plagiarising, beautifying & bullying, unfortunately. On topic, I think Apple are going to discover it's the Dr. Dre link people buy Beats 'phones for, once that's gone what have you got left? Actually it'll be a perfect fit for Apple products post-Jobs ...

Share this post


Link to post
Share on other sites

Really odd purchase. Apple has the brand, and presumably the tech to do the online music services. Though my experience of iTunes was that it was shockingly bad but that was many years ago.

What I am saying us Apple could make their own headphones and people would buy them ?

Maybe Facebook want them and its to stop god buying them.

Edited by Ash4781

Share this post


Link to post
Share on other sites

Though my experience of iTunes was that it was shockingly bad but that was many years.

Was speaking in the office the other day about iTunes. Everyone said it's the weakness in the system. Sometimes it's awful indeed but the iPhone is less tethered to it these days.

Apple headphones have never been good - no not talking about audiophile warmth and all that tosh, talking about comfort and basic sound quality.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   215 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.