http://www.bbc.co.uk/news/business-27336863
Quote:
|
Technology giant Apple is in talks to buy headphone maker and music-streaming service provider Beats Electronics, according to various media reports.
|
This deal makes no sense on the face of it. The headphones are popular and the brand is cool but Apple already have a cool brand in music and the headphones are not anything special outside of the marketing. If Apple wanted to move more seriously into the headphone business they could do it without blowing billions on Beats and their image would ensure some traction at least.
Apple will have to keep the brand 'Beats' making it the first time they've sold anything under another brand. It would complicate the rather simple focus Apple have for their products and I don't see the revenue being worth the money they're spending and the additional focus they'll have to spend on this market. I mean seriously, how does Beats help Apple?
The other aspect is Beats' streaming service but surely there are better targets than a fledging streaming service without many users? Spotify is a much more mature service with a bigger user base. Spotify would be a much better fit for Apple, the technology is there, the experience is there and it would instantly give them a platform on Android and Windows Phone. Spotify is the biggest threat to iTunes as well so that's one rival killed off.
The only thing that would make sense here would be if they purchased it to stop either Google, Samsung or Microsoft buying it and using the brand to market their phones ('Beats' Phones + headphones + steaming) and instantly gaining ground on the one area Apple still excels at on mobile devices.
Still Spotify would surely be a better buy.
But then again I am not a Chief Executive of the world's richest company.
