back to article $3.2bn Apple deal would make hip-hop mogul Dr Dre a BEEELLLIONAIRE

Insiders claim that Apple is close to acquiring Beats Electronics, the headphones-and-streaming-music company founded by music mogul Jimmy Iovine and rapper Dr Dre, in what would be the largest purchase in Apple's history. Separate reports by Bloomberg and the Financial Times both value the proposed deal at $3.2bn. Previously …

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  1. M Gale

    Isn't Beats Audio just a funky way of saying...

    ..."I don't know how to use a graphic equaliser"?

    Match made in heaven, I suppose.

    1. P. Lee Silver badge

      Re: Isn't Beats Audio just a funky way of saying...

      Up at either end, flat in the middle, and everything in between interpolated - if my 80's memory serves.

      Also achieved by the "bass boost" option button for a cleaner interface (late 80's/90's).

      "No option" is the latest version of a simple interface. It appears they have achieved Apple's requisite level of user interface design.

      Actually, HP's original touchpad has excellent sound - knocks the spots of most laptops. I don't know if that was Dre-influenced. Personally, I've always thought that marketing HP and rap-influence together was an uneasy situation. Surely if HTC, HP and Apple all have it, it can't still be cool and fighting against the Man.

      Oi Apple, an iscsi initiator would be far more useful. Anyone who is serious about sound is going to run things through an external amp and can mess with it there. By "serious" I mean, "at least vaguely interested in turning the volume up a bit."

      1. wolfetone Silver badge

        Re: Isn't Beats Audio just a funky way of saying...

        "Surely if HTC, HP and Apple all have it, it can't still be cool and fighting against the Man."

        To quote the first proper number 1 in the UK of the Millenium by the Manic Street Preachers, "Masses Against The Classes" - "A slave begins by demanding justice and ends by wanting to wear a crown".

        Same can be said for most people who start off kicking against the man but are then happy to lay down in bed with him once they have a tonne of money.

        I find the Beats Audio headphones a waste of time, and especially money. Far too much bass ruins the music I listen to but then again it could be good for other genres. For me, you can't beat a pair of £50 Sennheiser headphones.

        1. Dave 126 Silver badge

          Re: Isn't Beats Audio just a funky way of saying...

          >Far too much bass ruins the music I listen to but then again it could be good for other genres. For me, you can't beat a pair of £50 Sennheiser headphones.

          Interestingly, Phillips have taken advantage of there being too many 'Mega! Extreme! Bass!' headphones on the market, by actively promoting some of their wares as having a "natural sound". In addition, they have further sought to differentiate themselves by calling their line 'Indy', suggesting a musical genre removed from bass-heavy genres like dance and hip hop music, and by incorporating design cues such as denim into the headbands.

          Still yeah, if in doubt buy some Sennheisers at whatever price point you can afford.

        2. joeW
          Headmaster

          Re: Isn't Beats Audio just a funky way of saying...

          Or you could quote Albert Camus, which is who the Manics were quoting in that song.

          1. wolfetone Silver badge

            Re: Isn't Beats Audio just a funky way of saying...

            @joeW

            You are indeed correct, I didn't know it was a quote from Camus. I knew the first quote in the song was Noam Chomsky. Thank you for clarifying it, and as a thank you have a +1 as it's Friday :)

      2. Dave 126 Silver badge

        Re: Isn't Beats Audio just a funky way of saying...

        >Actually, HP's original touchpad has excellent sound - knocks the spots of most laptops. I don't know if that was Dre-influenced.

        It's simpler than that - there is no point in adding a few dollars to the cost (not to mention weight and bulk that could be used for a bigger battery or better cooling or whatever) of making a laptop sound better than average if you then have no way of advertising that to consumers. Audio quality is hard to express in numbers (like you would CPU speed, RAM size etc) so a degree of 'badge engineering' is the way to go.

        Apple have done it with Harmon Kardon in the past, others have done it with Bang and Olufsen.

        Obviously businessman Dre wouldn't want his company's name on a laptop that sounded rubbish, so the people he employs to protect his business interests are only going to sign off on it if the machine sounds better than average. How this is achieved doesn't really matter.

        Okay, so B&O do have experience of making some good compact Class D amplifiers, but a better than average audio system could also have been sourced from some other manufacturers who don't have the same brand presence. Having a B&O sticker on the laptop helps gets the message across on the sales floor.

        1. Anonymous Coward
          Anonymous Coward

          Re: Isn't Beats Audio just a funky way of saying...

          You can do small and powerful, I'm really impressed with the Sonos Play 1 considering its size. While anything like that won't match a proper hifi, it is great for the kitchen.

      3. Dave 126 Silver badge

        Re: Isn't Beats Audio just a funky way of saying...

        >Oi Apple, an iscsi initiator would be far more useful.

        Ug?

        Forgive my ignorance, but can't you already use external DACs with iDevices, just as you can with more recent Android devices? I've even heard of people using iPads with external DACs to play back native 192Khz 24bit FLAC files. Why's an eyescuzzy thingy needed?

        1. JeffyPoooh
          Pint

          Re: Isn't Beats Audio just a funky way of saying...

          "...use external DACs with iDevices..."

          "Not good enough. The iDevice has way too much jitter." (channeling the audiophiles)

          Eventually the iDevice is reduced to flash storage (of the uncompressed file), and the GUI, nothing more. That's assuming that the idiotphiles don't accuse the flash storage of being multilevel and thus somehow ruining the bits.

          1. Michael Wojcik Silver badge

            Re: Isn't Beats Audio just a funky way of saying...

            That's assuming that the idiotphiles don't accuse the flash storage of being multilevel and thus somehow ruining the bits.

            It certainly doesn't have that rich, natural sound that you get from core memory. You can't beat magnets strung on wires.

            1. Anomalous Cowturd
              Boffin

              @ Michael Wojcik

              Oi, I cut my teeth on an ICL 2904 with 64kB of core store the size of a fridge, and 10MB Winchester packs the size of a small planet, and it sounded like lots of fans running in the background...

              Hummmmmm......

        2. jonathanb Silver badge

          Re: Isn't Beats Audio just a funky way of saying...

          An iSCSI thingy is needed so you can store your massive collection of 192KHz 24 FLAC files on a network attached storage device and access them on your computer.

          I have a Proliant Microserver running FreeNAS with 10TB of addressable space (5 x 3TB drives). On Windows, the transfer speed is about double if I use iSCSI to access it rather than Samba. On my MacBook, the only options are Samba and Netatalk and performance is around the same as using Samba on Windows.

      4. deadlockvictim Silver badge

        Re: Isn't Beats Audio just a funky way of saying...

        P.Lee» an iscsi initiator would be far more useful.

        It is ironic that Apple shouldn't have an iSCSI initiator.

        Apple were one of the big proponents and every mac had it until SJ returned in 1997. Apple have also become known for their consumer products being iThings. That they don't have iSCSI is a shame.

    2. Anonymous Coward
      Anonymous Coward

      Re: Isn't Beats Audio just a funky way of saying...

      Actually it's just a funky way of saying "I paid too much for my headphones".

      1. Aristotles slow and dimwitted horse Silver badge

        Re: Isn't Beats Audio just a funky way of saying...

        "I paid too much for my headphones".

        Agreed, but it also says that "I have no real interest in the actual fidelity of music".

      2. Chika

        Re: Isn't Beats Audio just a funky way of saying...

        Actually it's just a funky way of saying "I paid too much for my headphones".

        Or, in other words, as a certain comedian once said;

        "I got LOADSAMONEY!!!" (or possibly "I HAD loadsamoney")

    3. Anonymous Coward
      Anonymous Coward

      Re: Isn't Beats Audio just a funky way of saying...

      It's a combination of EQ and having a decent amount of power available to drive headphones. But it is largely bollocks. Monster audio used to be involved.

    4. JeffyPoooh
      Pint

      Beats headphones/earphones, and the 2nd Shift Theory

      If you attend the largest electronics night market in Hong Kong, you'll quickly realize that the gadgets on offer are disappointingly boring because approximately half of the vendors' inventory are just Beats brand headphones. Extremely tedious. They're on offer for about 25% of North Amnerican inflated retail. I didn't bother to explore the ultimate selling price by actually buying one - because I wouldn't want people to see me with Beats headphone and justifiably conclude I was a moron.

      Wearing Beats brand = not likely to be attending many Mensa meetings.

      Usually this volume of grey market product is a strong clue that a renegade contracted factory is perhaps running a 2nd shift to crank out unauthorised, but otherwise genuine, product.

      Something Apple would likely put a stop to.

  2. Anomalous Cowturd
    Trollface

    Overpriced, over-rated and over-valued...

    They sound like a perfect match!

    1. Don Jefe

      Re: Overpriced, over-rated and over-valued...

      Eerily, overpriced, over-rated and over-valued also describes a lot of opinions.

      1. Dave 126 Silver badge

        Re: Overpriced, over-rated and over-valued...

        >over-rated and over-valued also describes a lot of opinions.

        Situation normal, then!

        But yeah. The Bloomberg report - and the rest of the internet - places far more emphasis on the music streaming side of Beats' business. To comment on the headphones (which aren't great but are very profitable) is to miss the point. It's not hard to grok (if you read before you comment):

        People are buying less music each year and are streaming it instead. Apple's attempts to launch streaming services haven't been as successful. Spotify and Beats et al are eating Apple's iTunes lunch. Apple need in.

        Whether or not this foot in the door is worth 3 beeellion dollars, I have no idea, but some 'badge engineering' certainly isn't.

        1. tony
          Happy

          Re: Overpriced, over-rated and over-valued...

          "(which aren't great but are very profitable)"

          Sounds like most fashionable purchases.

        2. Don Jefe

          Re: Overpriced, over-rated and over-valued...

          Apple has vendor relations problem, not a lack of headphones or semi-retired gangsta rappers problem. Apple want Beats because of their contracts with the record labels, which have considerably better terms than what they've been able to negotiate.

          Once they've bought those terms they're in a good spot for future negotiations with the labels. The labels are still angry at Apple for boxing them in on iTunes pricing, they feel like they left money on the table before. Beats gives Apple a toehold and the labels will have to negotiate on Apple's terms or take the revenue hit.

          Facts are cool. A person can't say 'over priced/valued/etcetera' unless they've got facts. If they had facts they would have no sane reason to comment on price, because the price is a bargain.

        3. jai

          Re: Overpriced, over-rated and over-valued...

          The Bloomberg report - and the rest of the internet - places far more emphasis on the music streaming side of Beats' business

          To be fair, so too did the original report on April Fools day:

          http://lefsetz.com/wordpress/index.php/archives/2014/04/01/apple-buys-beats/

          Have any of the other sites to report on this confirmed that they've done further research to see if there is anything more to this story than an April Fools joke?

      2. Anomalous Cowturd
        Stop

        Re: Overpriced, over-rated and over-valued...

        Don't worry Don, my opinions will always be free at the point of use.

        The other two, I leave to your discretion.

        ;o)

  3. Oh Homer
    Childcatcher

    Perfect match

    It makes sense that con-artists like Apple would buy into a scam like Beats Audio.

    1. Tom 35

      Re: Perfect match

      Now they just need to buy Monster cable.

      I expect they could save a lot by combining the legal teams.

      1. Steve Medway
        Joke

        Re: Perfect match

        Apple don't need Monster Cable... They're already selling Thunderbolt cables for £35.00 a pop without the bad publicity ;)

    2. Anonymous Coward
      Anonymous Coward

      Re: Perfect match

      Reading those specs in your link it doesn't sound like a scam. The EQ part may be, but the other parts are merely defining a minimum specification for audio which is much higher than other devices.

      So what they're doing to ensuring that audio gets special treatment by the PCB designer, who normally wouldn't really care or know much about audio design (it's a phone, not a HifI).

  4. Ian 55

    'Beats Audio' the perfect match for 'Retina displays'.

    In so many ways...

  5. Anonymous Coward
    Anonymous Coward

    Just as dumb as Google buying Nest for the same $3.2 billion

    How could this possibly be worth it for Apple? It is always cheaper to license technology or hire the people who developed it than to massively overspend for an acquisition.

    As a shareholder, I certainly hope this rumor turns out to be just that.

    1. Dave 126 Silver badge

      Re: Just as dumb as Google buying Nest for the same $3.2 billion

      >It is always cheaper to license technology or hire the people who developed it

      Umm, I'm not sure that Beats headphones have any exclusive technology - they are mediocre headphones sold at a large mark-up, which is why Beats command a large fraction of the profits in the headphone sector. Nor is the style and image of Beats hardware a natural fit for Apple... and in any case, this image can't be relied upon to be in vogue indefinitely, oh capricious fashion!

      Apple wouldn't be doing it for the headphones, but for the music streaming service Beats already has in place. As an Apple shareholder, you'll be aware that music streaming is eating into iTunes music sales.

    2. Don Jefe

      Re: Just as dumb as Google buying Nest for the same $3.2 billion

      They aren't buying the technology, that gets tossed in for free. They're buying the streaming contracts as leverage for future negotiations with record labels.

      I'm curious as to why you think licensing or hiring people is always less expensive. That is incredibly incorrect, I just want to know how you arrived at that conclusion.

      1. Anonymous Coward
        Anonymous Coward

        Re: Just as dumb as Google buying Nest for the same $3.2 billion

        I should have said "always less expensive than paying a crazy price for a company". If you don't wildly overpay then I agree, licensing/hiring can easily get more expensive.

        Does Beats really have better streaming contracts than Pandora, iHeartRadio et al? Surely they could buy one of the many streaming players for much less than $3.2 billion.

  6. Kevin McMurtrie Silver badge

    For what?

    Unless I've seen wrong, Beats has no intellectual property or inventions. They're a copyright logo and style of sound. What exactly is Apple buying?

    1. Dave 126 Silver badge

      Re: For what?

      A music streaming service, because streaming is up and digital music sales are down.

  7. JDX Gold badge

    In 2011, HTC invested $309m for a 50 per cent stake in the company

    So in 3 years the company value has quintupled from 0.6bn to 3.2bn?

    1. Anonymous Coward
      Anonymous Coward

      Re: In 2011, HTC invested $309m for a 50 per cent stake in the company

      > So in 3 years the company value has quintupled from 0.6bn to 3.2bn?

      Yes. When the invisible hand guides the free market, quintupling happens.

      1. Destroy All Monsters Silver badge

        Re: In 2011, HTC invested $309m for a 50 per cent stake in the company

        Unless there is a dead hand persistently pushing the "print" button at the federal reserve.

        Which is the case.

  8. Anonymous Coward
    Anonymous Coward

    That's what you do

    when you don't really have a product development strategy - and Apple does not appear to have one. Churning out the same iPhone or iPad year after year and changing the model number along with the color or texture of the back plastic or the placement of the on/off button isn't really a product development strategy.

    So, you make a completely nonsensical and very expensive purchase, and you get the industry analysts and fanbois busy with vapor talk for the next six months.

    Oh, almost forgot: Apple, if you go ahead with this purchase, please don't forget to get a patent for "Mechanism and Apparatus for listening to Music through a Pair of Headphones connected to a Music Player". That should be worth at least 12 Samsung lawsuits.

    1. Dave 126 Silver badge

      Re: That's what you do

      >That's what you do when you don't really have a product development strategy - and Apple does not appear to have one.

      I'd have thought that keeping your powder dry and waiting for the correct time to release a product in a new category is a better strategy than just releasing a product for the sake of it.

      iPods required Hitachi to make 1.8" HDDs first, in order to achieve a 'cigarette packet' size. iPhones required a threshold level of CPU/GPU and battery performance. iPads sold more units than Windows XP Tablet Edition machines, in part because they were lighter and the consumers were already familiar with multi-touch UIs on phones. None of these Apple devices were the first devices of their kind, but each was successful, profit wise.

      It isn't always a bad strategy to let other companies make the first attempts to create a new category, and to learn lessons from their failures and successes.

      However, in this case Spotify and others have benefited from being ahead of Apple on the music streaming front. Apple did well to negotiate with music publishers at the birth of their iTunes store (tempted publishers in with DRM, which Apple then dropped when they had enough industry clout), but now it looks like they might be thinking of buying their way in to streaming instead.

      1. Don Jefe

        Re: That's what you do

        For Apple to release new products or branch out from their current catalog would be just atrociously bad business. Like gross negligence, hire a Siberian Tiger as a nanny negligent.

        You never, ever, under any circumstances dick with your offerings if they are still performing well. That's lemonade stand business basics. You don't do anything until the money slows down then you've got your war chest to keep things going.

        The longer a product is produced the more its margins increase. Equipment and tooling are unbelievably expensive and if you change too fast you never get to stop writing me large checks.

        Furthermore, you risk pulling the carpet from under your existing product if your new widget forces the customer to choose between buying another of the thing they don't mind buying, or the new thing.

        There are lots of loudmouths out there screaming for Apple to do something new, but they don't have the business sense of a well polished moose turd. People that actually know what they're doing would pull their money out of Apple is a nanosecond if they started fixing what isn't broken. I know I would, and I'm pretty good at this stuff.

        1. Dave 126 Silver badge

          Re: That's what you do

          >You would think Apple would move into home automation or multi-room sound

          When Android mobe makers LG and Samsung make fridges, air conditioners and the like... hmmm. But maybe. After all, they have sold 4" and 10" control surfaces to lots of people.

          Multi-room sound. The little Apple Airports have featured a 3.5mm audio out for years. I don't know how well they work (e.g speakers in sync between rooms?), but it seems a 'good enough' solution for some.

          >For Apple to release new products or branch out from their current catalog would be just atrociously bad business.

          Respectfully Don, isn't that what they did with the iPod, iTunes and iPhone?

          >The longer a product is produced the more its margins increase.

          Yeah, all things being equal. But you usually have to drop the price after a while in order to meet the competition.

          There was an interesting radio discussion the other day about how competition is supposed to reward efficiencies, so that the end game is that nobody makes any profits (as people suggest when thy talk about 'commodity phone makers'). The summary was that the only way to profit is to hold a temporary monopoly.

          1. Don Jefe

            Re: That's what you do

            Samsung and Apple are not remotely comparable companies. There is a single page in their catalogs where a few products overlap, but that's it. Apple would fail if they ran their business like Samsung and Samsung would fail if they went the Apple route. Both have perfectly valid models, they just aren't comparable. Samsung's latitude means they will probably last forever, long after the bottom falls out of consumer electronics. Apple will likely just disappear.

            I'm not sure if you remember Apple before the iStuff, but they were useless. A money pit with no redeeming products and no love from anybody sane. Then they hit on the iStuff and the product sweet spot every company hopes for, but few ever achieve. You don't screw with that until it's broken beyond repair. You don't take a despised company that has to sue stores to get retail shelf space and turn it into the most valuable company on Earth in just a few years then go fiddling with it. It's a stupid risk, with little gain and a lot of downsides. There's no reason to hurry new products if you're on that situation, it's bad business.

            All things are never equal in manufacturing. If you think Apple products are expensive you ought to see the price tags on bespoke manufacturing equipment. Even giant globocorps take years to pay off their equipment and even then it costs millions of dollars per year, per machine, just to keep them humming along like they do. It takes a few years, but once you've got a truly stable production line with no surprises left to uncover you can do anything you want with your pricing. Drop it a shit ton if you want, competitors with more fluid production lines simply can't get that level of cost control.

            They are always paying (me, in many cases) big bucks to have existing equipment retooled to crank out new products or all new equipment built. We've got equipment going to China later this year that will take 7-8 months to get setup and dialed in, and we've been working on in for four years already. If you're radically changing products all the time you're always at least half a decade away from being able to control production costs without negatively affecting product quality. You've got a tiny amount of wiggle room and the company who has kept their catalog stable has enormous amounts of pricing latitude that you just can't compete with. They can undercut you in a second, and there's fuck all you can do about it. I'm not going to lower my prices, neither is anyone else in my field.

            And that's why playing the pricing game is stupid. It's a short sighted consumer who thinks lower pricing and more sales is automatically good. It's great if you've got to generate revenue to cover your production expenses, but that has a ceiling that absolutely cannot be surpassed if you change products all the time. That's not opinion, or in some cases, or depends, that's an unchangeable, universal truth in manufacturing at scale.

            1. Anonymous Coward
              Anonymous Coward

              Re: That's what you do

              > If you think Apple products are expensive you ought to see the price tags on bespoke manufacturing equipment.

              Do you even have a clue when comparing Samsung with Apple as manufacturing companies?

              Disclaimer: I am neither an Apple fanboi nor a Samsung fanboi. I couldn't care less about either of them.

              Apple is not a hardware manufacturing company: they do not manufacture any hardware. Everything with an Apple logo on it, and everything that goes inside an iProduct with an Apple logo on it, is outsourced to third-parties: Flextronics, Asus, Analog Devices, Dow Corning, etc. Not even your iPhone's USD $20 plastic case is made by Apple.

              There's a very long list of Apple manufacturing suppliers here (Warning: PDF):

              https://www.apple.com/supplier-responsibility/pdf/Apple_Supplier_List_2014.pdf

              Most of them are in China.

              So, when you talk about Apple's cost of retooling as a manufacturer, what exactly are you talking about?

              1. razorfishsl

                admin@razorfishsolutions.com.hk

                You would have to be fairly thick to think that 're-tooling' costs are 'absorbed' by the manufacturers.

                That would be like being able to print money for nothing.

                Next up… apple DO manufacture, and because it is Apple, then it is not going to be on a Supplier-responsibility list is it?… because it would be a sub-division.

                you appear to have a very limited outlook of what is encompassed by the term 'manufacturing'

    2. Anonymous Coward
      Anonymous Coward

      Re: That's what you do

      You would think Apple would move into home automation or multi-room sound.

      Having a z-wave system, Nest thermostat and a Sonos you can see there's a lot of money in these markets.

      Yet Apple just seem to be protecting what markets they have now rather than push into new ones.

      Tim Cook is an overpaid pratt.

    3. Yet Another Anonymous coward Silver badge

      Re: That's what you do

      Apple isn't a product development company - they are a music download company.

      They are buying the good doctor because of the company's download deals.

      Expect them to start buying record labels and music studios next.

      They are doing what Sony should have done in the 90s. Own the content, instead they bought studios to supply their low margin hw business.

  9. Anonymous Coward
    Anonymous Coward

    If it rids the public transport networks of the world of those cheap and nasty white Apple earphones that leak "RnB" all over our buses and trains, it'll be money well spent. At any price.

  10. MooJohn

    Listening to beets would sound better

    Another case of paying for image or "street cred" when the product itself is absolute junk. A value of over 3 BEEELION dollars is absurd. You'd think they could purchase a real audio company for far less than that.

    1. Dave 126 Silver badge

      Re: Listening to beets would sound better

      Sennheiser don't have a music streaming division, last I checked.

    2. JDX Gold badge

      Re: Listening to beets would sound better

      Absolute junk based on what?

  11. Anonymous Coward
    Anonymous Coward

    This is all about...

    Branding! The headphones themselves aren't great and some are even mediocre. But hey Hip hop moves product doesn't it--- even if its total sh*t!

    Apologies to the lovers of the genre, but hey where's the timeless classic melodies???... The world is so fake sometimes... Everything is about monetization and selling out!

    1. Anonymous Coward
      Anonymous Coward

      Re: This is all about...

      >Apologies to the lovers of the genre, but hey where's the timeless classic melodies???.

      Don't apologise! Lovers of the genre are more "sick of phoney gangsters controlling the dancefloor" than the layman. There is some good hiphop out there that is actively critical of the money / sexism / guns rubbish that is actively promoted by MTV or whatever the kids are into these days.

      'Why Hip Hop Sucks in '96', by DJ Shadow... the sole vocal sample is "It's the money!"

      Or, as Bill Hicks observed in '94.... Vanilla Ice fellating Satan so that money is put into the pockets of teenage girls.

      1. JDX Gold badge

        Re: This is all about...

        Hilariously, some of the more timeless classic rap is stuff like Will Smith SummerTime!

  12. Eradicate all BB entrants

    I always thought it was ......

    ...... odd to see someone wearing Beats plugged into an iDevice. After getting stiffed with crap earphones in the box, why on earth would you go out and spend £150 on a set that are just as crap?

    1. John Bailey

      Re: I always thought it was ......

      Because for some, price = quality, and brand = status.

      Guess who also buy iThingies..

      Sound quality is not a factor here.

      And really. If you are only using them in an iProduct, a good set of buds will not turn a sows ear in to a silk purse. No pair of headphones or speakers or amp will ever push out better sound than the source can provide. So a good pair is really a waste of time.

      The cans are crap. No argument. But they are expensive, and a recognised brand. And more importantly.. people can SEE the logo. Which is all that matters.

      The perfect storm for brandwashed fanboys. Expect Beats phones to become magical products of immaculate industrial design that we haters are only mocking because we can't afford them.

      It could really only be funnier if they were buying BOSE.

      1. JDX Gold badge

        Re: I always thought it was ......

        Yeah right and Android has magic MP3 powers.

        1. Anonymous Coward
          Anonymous Coward

          Re: I always thought it was ......

          My HTC One does have magic MP3 powers... It's got Beats Audio! Your poxy iPhone doesnt, does it?

          What's the problem, couldnt afford a proper phone and decent sound?

          Joking aside, the idevice range has ALWAYS been derided by audiophiles as a bit shit as a music source.

          Most Android devices will be no better, but some do produce some beautiful audio through a decent set of headphones.

  13. Frankee Llonnygog

    This rumour is wrong

    Looks like a feeble attempt at market manipulation to me. The only brand logo on an Apple device is and will be Apple's. Apart from the logo, what does Beats have? The combined revenue from Pandora, Spotify, Beats etc streaming is only half that of iTunes.

    1. Frankee Llonnygog

      Re: This rumour is wrong

      Having had a quick ferret around for commentary, the only rationale that makes any sense is that this is a way of bringing Jimmy Iovone onto the board - but even that could be done by just offering him a seat

    2. Dave 126 Silver badge

      Re: This rumour is wrong

      >The combined revenue from Pandora, Spotify, Beats etc streaming is only half that of iTunes.

      Currently. But the trends suggest that they are on the up, and purchasing music is on the decline.

      1. Frankee Llonnygog

        Re: This rumour is wrong

        Apple already has a streaming service. Beats's license deals are probably not transferable. So, what does Apple get for the money? Mystifying.

  14. Jay 2
    Megaphone

    I think a lot of people's concept of Apple does have a wiff of style over substance. Though to me Beats really are style over substance!

  15. Anonymous Coward
    Anonymous Coward

    More proof Apple has lost it, they can't create anything now, just buy it.

    iPhones are pretty chavvy already, eing bundled with Beats just makes them seem about as cool as modified Citroen Saxo.

  16. Magnus_Pym

    Coporaste purchase strategy?

    Apple, like a lot of US high tech companies have a lot of money 'offshore' (i.e. money made elsewhere in the world that doesn't attract US tax until it is brought home). Buying non-US businesses is a way of turning that money into company value without paying the tax that bringing into the US would attract. Microsoft buying Nokia with some of their offshore money, in theory, increases the value of Microsoft stock so making money for the boardroom stock holders without paying the US tax that they would spending it in the US. Like a lot of web based business, streaming music makes it's profit where ever the owner says it does. If the purchase can be carried out 'offshore' then the streaming music service profits operate as a money laundering system. Hey presto 3 billion dollars of low-taxed overseas assets become become x million dollars a year of US onshore income.

  17. Version 1.0 Silver badge

    But it goes to 11 ...

    Oh no wait, it doesn't does it?

  18. Truth4u

    Why does Apple hate audio?

    First the iPod headphones now some headphones that are just as bad for 200x the price. Do Apple just plain hate music?

  19. Sir Alien

    Mid-range headphones are decent these days

    Disclaimer 1: I am NOT an audiophile but do like music to sound reasonably good so meh...

    Disclaimer 2: I do NOT work for SteelSeries or have any affiliation to them.

    I personally find decent mid-range mid-price headphones/headsets are actually very decent these days. When my last headset broke I went out looking for another pair and stumbled upon a brand called steel series which seems more like they are for gamers but audio quality for music for my ears is actually very good. (my younger ears, can hear higher frequencies)

    Spent months looking and most headphones only have a frequency range of 20Hz to 20KHz but this set (link below) does 18Hz to 28KHz. For music I have the graphic equaliser flat (off) and the music sounds great on my MacBook Pro onboard sound. Nice bass, nice mid-range and nice treble.

    All in all, paying high price for something does not "always" provide quality but there are those rare occasions.

    Half the price of Dre headphones and sounds better in my opinion http://steelseries.com/products/audio/steelseries-siberia-v2

    - S.A.

  20. Squeezer

    Nothing sold as a "gaming headset" is ever going to sound as good as high-quality studio/monitor headphones from Sennheiser, Beyerdynamic, AKG etc., even if it is better than the Beats rubbish.

    Anyone buying headphones based on a quoted frequency response with no other information (so how far down is the response at 28kHz, and can you hear this anyway?) is looking at the wrong thing...

    To choose cans based on sound quality, look at head-fi.org first. If you want excellent sound and comfort at a reasonable price, try Grado SR60i for open back or Beyerdynamic DT770 Pro for closed back.

    1. Sir Alien

      You miss the point. Many people want decent headphones but not wanting to pay the massive prices for the good stuff. So it mainly comes to three categories like trash, decent, amazing.

      Yes I would put those studio headphones in the amazing category however not all of us earn the amazing salary to get them. As for sound frequency, it is not an only criteria but I find many headset with a wider range seems to sound better.

      If money was no object then top of the range Sennheiser or similar would have been the better purchase of course.

      - S.A

      1. Squeezer

        Steelseries Siberia V2 £85

        Grado SR60i £68

        I know which I'd put money on sounding better...

        (OK, Beyerdynamic DT770 Pro is £114...)

        1. Truth4u

          DT770 vs DT150?

          I have the DT150, I don't care that they're square, a quick google says they are superior (and cheaper). Nice rugged pair of phones too, the 770s don't look half as solid. I like that there is a metal bolt holding the cable in place on the 150s, I have been known to try standing up with my foot on the cable.

          250 ohms but my amp drives it as easy as anything else, and to deafening levels. Actually that is the one downside to these phones, they will destroy your hearing before you come close to damaging them.

          1. Dave 126 Silver badge
            Happy

            Re: DT770 vs DT150?

            >Nothing sold as a "gaming headset" is ever going to sound as good as high-quality studio/monitor headphones from Sennheiser, Beyerdynamic, AKG etc.

            If you ask the other person in the room, they might say the closed-back gaming headphones are lovely and silent, whereas the open-backed monitor 'phones sound annoying!

            1. Squeezer

              Re: DT770 vs DT150?

              They're both closed-back...

          2. Squeezer

            Re: DT770 vs DT150?

            I've used both in the studio, the DT770 was a lot more comfortable and sounded better all round.

            The DT150 is common because it's indestructible and serviceable (and cheaper) but the sound isn't the best -- fine for providing foldback to musicians, but not as good for mixing or listening.

            http://www.soundonsound.com/sos/jan10/articles/studioheadphones.htm

    2. Tom 38 Silver badge

      Nothing sold as a "gaming headset" is ever going to sound as good as high-quality studio/monitor headphones from Sennheiser, Beyerdynamic, AKG etc., even if it is better than the Beats rubbish.

      And nothing sold as a studio/monitor headset is going to have a microphone.

      Sennheiser gaming cans sound great, have closed backs, chunky indestructible mic booms. They aren't as crisp or clean as Sennheiser studio cans, deliberately.

      Frankly I've used "super audiophile" monitor headsets that just sound crap and tinny to me Different people like different things.

  21. Mage Silver badge
    Facepalm

    Lost in Space

    I know a Brand can be valuable.

    But Beat Audio is nothing more than a Brand that could be as irrelevant as Myspace next year.

    Has Apple flipped?

    1. FlatSpot
      Trollface

      Re: Lost in Space

      Is it not just a marketing company buying (potentially) another marketing company... with a bit of tech in between and a large legal team overlay.

  22. BigG
    Paris Hilton

    Not the technology

    The chaps at Beats are VERY good at getting their products on celebrities (given free if not actively paid to sport them as they exit that jet/team coach). And that's pretty much half or 3/4 of the game.

    Headphones are wearable, the same as a watch, which is why I'd hazard a guess Apple really could do with their know-how.

    In terms of audio tech there is already better much lower hanging fruit (mentioned above). But that probably isn't the priority.

    Paris, because she's a celeb too!

    1. Truth4u

      Re: The chaps at Beats are VERY good at getting their products on celebrities

      But when the current crop of 'musicians' have all sold out, who is going to shill this stuff next?

      The music scene is essentially dead. last call.

      1. JDX Gold badge

        Re: The chaps at Beats are VERY good at getting their products on celebrities

        OK Dad.

  23. Squeezer

    The only good thing you can say about Beats is that as over-priced under-engineered image-driven products they're still second to Bose...

    1. Anonymous Coward
      Anonymous Coward

      "over-priced under-engineered image-driven products"

      Sounds like a match made in heaven, then.

  24. JLV

    Well...

    Will this allows Apple customers to avoid their _awful_ little white crap headphones? I mean, you've just shelled out some serious dosh buying an iThingy and... you are using $5 Walmart headphones with it.

    Nuptials make sense, in a way. Beats are definitely more style than substance (a Sennheiser guy myself) but their marketing brilliantly succeeds at extracting $ from customers' wallets. Something Apple is also very good at, albeit for (IMHO) somewhat better reasons*.

    Still, can't help but think that $3.2 billion is a lot of moolah for an iffy audio company. Plenty of scope to mess it up. Even if good marketing could also allow Apple to capture more audio profits.

    Wonder what the deal means to Monster who is(was?) the manufacturer for Beats. Hopefully nothing good. If there is one company that is specialized in providing little value at great cost, that 's Monster for you.

    * My latest shiny is a Nexus 5 but have a fair of Apple stuff too. Me like both and dislike fanbois of either persuasion.

  25. jelabarre59 Silver badge

    I mean, really folks. $200.00 for headphones? I can go to the Dollar Store and pick up eafrbuds for, you guessed it, *one* dollar...

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