Why Apple may need to buy Beats?

Of course, the main news this week began Talks on buying between Apple and Beats Electronics. After some time, the actor Tyris Gibson allegedly confirmed the deal, which cost the company from Cupertino $ 3.2 billion

Still later began to appear more information about what the founders of Beats Producer Jimmy Ayovin and hip-hop star Dr. Dre get the post of senior vice presidents Apple. But left unanswered the main question: why apple company contact manufacturer pretty mediocre, though incredibly popular headphone?

By Opinion Jim Dalrymple of The Loop, such large purchases may occur for several reasons:

  • Product. For example, the buyer wants to expand its current product line, but to buy an existing company is much easier than creating a business from scratch. Or buyer firmly convinced that he was not able to compete with the products of another company, so he simply absorbs competitor. Hard to believe that Apple could be interested headphones Beats, but apart from these, the company has a decent streaming music service Beats Music.
  • Employees. This is a very important reason, sometimes even more weighty than the product itself. It is the desire of the buyer to get a talented team of people who will continue to work on the products of his new employer. In the case of a major acquisition for Beats Apple certainly become Jimmy Ayovin – a true legend in the music industry.
  • Technology. This is another important reason. Many companies often make such purchases with the sole purpose – to integrate the acquired technology into their products. In recent years, Apple also repeatedly to do so.
  • Brand. Sometimes a specific market brands can complement each other. This is especially important when considering the youngest age group. In this case, and there was a sense to buy manufacturer incredibly popular among young people of headphones.

But perhaps the most extravagant purchase reason Beats Expressed famous "okoloyablochny" blogger John Gruber:

Previous largest purchase NeXT Apple was back in 1996 for $ 400 million (it is worth noting that in those days it was an impressive amount of money, but $ 3.2 billion – only 2% of the current stock of cash Apple). Although Tim Cook has repeatedly said that his company has no prejudices against expensive purchases before so she did not spend large sums of money for these purposes. Also, Apple has its own sub-brands. So this is new territory for the company.

Beats brand is very popular among African Americans, and this may explain why this purchase makes sense for Apple: 73% of black smartphone owners in the U.S. are users of Android . And among them Beats has such appeal of the brand, which it is not Apple.

Anyway, we have to wait for official confirmation of the transaction from one of the parties – may be in the press release will contain the answer to the question posed at the outset.

This entry was posted in News and tagged , , , , , , . Bookmark the permalink .

Leave a Reply