RamblinE
(╯°□°)╯彡┻━┻
Gizmodo being uppity about this. http://gizmodo.com/5981823/beat-by-...source=gizmodo_facebook&utm_medium=socialflow
Sent from my Nexus 5 using Tapatalk
Sent from my Nexus 5 using Tapatalk
Apple wants to buy Beats
- Thread starter zinnah
- Start date
Wow, some serious margins in the headphone biz. According to some of the talking heads on CNBC, the $200 headphones are manufactured for $14, and they are considered a decent product, but do not contain the quality technologies and design that characterize most Apple products.
grillebilly
Empty Head
As an aside...I just heard on the radio that the headphones cost $14 to make.
A can of Red Bull costs 13 cents to make, package, and deliver to market.
My hat is off to those entrepreneurs who can make us feel good about giving them gobs of cash.
A can of Red Bull costs 13 cents to make, package, and deliver to market.
My hat is off to those entrepreneurs who can make us feel good about giving them gobs of cash.
grillebilly
Empty Head
Who is demonizing them for making money? I said my hat is off to them, that is a complement. :scratch2:
spartanmanor
Lunatic Member
Apple jumped the shark
grillebilly
Empty Head
I wasn't, just wanted to set the record straight. I would of loved to be the pet rock inventor. Separating the consumer from his cash, willingly, and making them believe it was a good deal, without lying or misrepresenting your product or service, is good business.
H.L. Menken- "No one ever went broke underestimating the tastes of the American public"
H.L. Menken- "No one ever went broke underestimating the tastes of the American public"
river25
Super Member
I think the bottled water guys have got it made.
How hard it must be to bottle water, and then laugh all the way to the bank as people spend more per litre on water than petrol!
Considering the technology, man power and industry required to extract, refine and transport petroleum, it makes you realise how much of a great gig the bottled water companies are on.
Never understood why I would buy water in a bottle, which is 1000% more expensive than tap water.
I understand there are some places and perhaps some times where tap water may not be drinkable, but that's the exception rather than the rule.
How hard it must be to bottle water, and then laugh all the way to the bank as people spend more per litre on water than petrol!
Considering the technology, man power and industry required to extract, refine and transport petroleum, it makes you realise how much of a great gig the bottled water companies are on.
Never understood why I would buy water in a bottle, which is 1000% more expensive than tap water.
I understand there are some places and perhaps some times where tap water may not be drinkable, but that's the exception rather than the rule.
RamblinE
(╯°□°)╯彡┻━┻
When on the road and thirsty its healthier than a soda. Then refill it in the water fountain of the next rest stop you're at and keep going. Repeat step two till arrival at destination.
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river25
Super Member
For sure, its healthier than soda and on trips and things like that I can understand the need for some bottled water.
But I know ppl who buy it all the time and that is all they drink. They use their tap water to wash, clean and water the garden.... but not drinking.
Hey, it's their choice, and that's cool... but it's not cheap and seems a frivolous expenditure for most of the time. And they whinge about the price of petrol but they're paying heaps more on just water.
I never understand some people.... myself included, at times.
But I know ppl who buy it all the time and that is all they drink. They use their tap water to wash, clean and water the garden.... but not drinking.
Hey, it's their choice, and that's cool... but it's not cheap and seems a frivolous expenditure for most of the time. And they whinge about the price of petrol but they're paying heaps more on just water.
I never understand some people.... myself included, at times.
It's about the streaming (beatsmusic.com) and Spotify , not the headphones although the headphones bring 60% of the under $300.00 headphone market with them and are profitable . iTunes is in decline and iRadio never amounted to anything.
In typical fashion Apple is late to the streaming music platform just like they were with iPods and smartphones although they were able to overcome that and dominate those markets .
The alternatives would have been Spotify at maybe ~6B or Pandora at ~5-6B. They get beats for ~3.2B although the streaming service needs work Beats otherwise gives them an on ramp to streaming some interesting working concepts , some street cred or gravitas if you will and a profitable headphone business that seems to be fashionable as well.
The streaming music could work out very well for Apple in the long term. A profitable headphone business can't hurt either.
Apple is all about domination and although 3.5B ( If the deal actually goes though ) is at minimum a 150% to value (probably more) purchase they are probably looking at it as an opportunity cost ,a hedge, or Tim Cook has otherwise lost his mind!
In typical fashion Apple is late to the streaming music platform just like they were with iPods and smartphones although they were able to overcome that and dominate those markets .
The alternatives would have been Spotify at maybe ~6B or Pandora at ~5-6B. They get beats for ~3.2B although the streaming service needs work Beats otherwise gives them an on ramp to streaming some interesting working concepts , some street cred or gravitas if you will and a profitable headphone business that seems to be fashionable as well.
The streaming music could work out very well for Apple in the long term. A profitable headphone business can't hurt either.
Apple is all about domination and although 3.5B ( If the deal actually goes though ) is at minimum a 150% to value (probably more) purchase they are probably looking at it as an opportunity cost ,a hedge, or Tim Cook has otherwise lost his mind!
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Yes, the most likely scenario is Apple buying Beats to access the streaming market. Apple has a history of enhancing an existing space or product, making it more accessible and charging more. They probably have already worked out changes to streaming so they just needed the vehicle to roll them out. Hopefully higher rez.
Buying Beats as the dominant, profitable and rapidly growing brand in the space at 3 times revenue seems like a very reasonable buy, possibly a steal if they make something out of it. Given that 3.2 billion is 2% of Apple's cash, this is a relatively small bet.
Buying Beats as the dominant, profitable and rapidly growing brand in the space at 3 times revenue seems like a very reasonable buy, possibly a steal if they make something out of it. Given that 3.2 billion is 2% of Apple's cash, this is a relatively small bet.
Interesting article lot's of stuff I never knew . I always suspected and assumed
dr. Dre and Levine had little if anything to do with the engineering or manufacturing
just didn't know the specifics cool article :thmbsp:
rnorton
Super Member
It fits their business model: Inferior equipment pioneered by others, put in a pretty container and sold through peer pressure and extreme amounts of advertising.
BillyBatts
ALOHA!
Microsoft, Google, Apple. The major three platform players in software and hardware. They'll keep gobbling slowly but surely. And they all want you to live in their world.
I recently jumped on Google with their Chromebook (after MS XP support ended) and could not be happier. It does everything I want/need it to do for $199. Yes, I have to live in Google-ville, but I don't care. It's not a bad place to live. Actually, it's quite pleasant. Especially if you are grabbing a cold one with Chetty (see "The Intern")
I recently jumped on Google with their Chromebook (after MS XP support ended) and could not be happier. It does everything I want/need it to do for $199. Yes, I have to live in Google-ville, but I don't care. It's not a bad place to live. Actually, it's quite pleasant. Especially if you are grabbing a cold one with Chetty (see "The Intern")
I agree... little risk to Apple considering their scale and cash reserves it could ultimately be a huge upside for them in the long term if they execute well.... and they might!
I think some of the (Intel) Chromebooks are just fine for a lot of folks that otherwise don't need the overhead or complexity of a windows or other PC, some with hdd's offer local storage as well what's not to like?