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Top Reasons Behind Apple And Beats Deal



Here are the reasons why apple bought Beats for whooping $3 billions.

#10 It's A Natural Addition To Their Look, Regardless Of How It Gets There

#10 It's A Natural Addition To Their Look, Regardless Of How It Gets There

This is heck true. While most may think that hipsters would be rather nonplussed about this (when aren't they?), they've never extended that mentality towards their gadgets, iPhone 5s and MacBooks are standard issue. Apple has always been in the hipster's wheelhouse, even when a job and a car isn't. $4,000 for a computer, $600 for a phone and just walking to Trader Joe's may seem like a wise decision for someone who lives in a big city with decent public transportation, but that’s not really the case. Apple is a brand, a brand that looks brilliant and this deal is just an addition.

#9 Fashion Accessory-Ception

#9 Fashion Accessory-Ception

As we mentioned earlier, Apple is a brand. The one thing Apple has always left a third-party to do is create accessories for their products. However, with the purchase of a company like Beats, Apple has opened the door to selling headphones that don't suck. Beats has a line of fifteen different headphones, in various colors and looks, that matches Apple's tendency to colorize its more popular devices. How brilliant is this!

#8 For-Profit Music Snobbery

#8 For-Profit Music Snobbery

Well this might well be a very smart move by Apple. Many believe that a major motivation behind Apple's most recent purchase is the streaming music service Beats has, and what it might be able to do for the flagging sales of the iTunes store. Apple has their own streaming service in iTunes Radio, but it currently only exists for iOS. Bringing Beats Music into the fold could potentially expand iTunes Radio's platform to cover Android and Windows platforms, bracing for the shift from download-centric music consumption to a more cloud-based streaming model. Smart, isn't it?

#7 It's An Open Invitation To Exploit A Whole New Culture

#7 It's An Open Invitation To Exploit A Whole New Culture

Ya seriously. Very true. Okay, so hipsters are notorious for appropriating other cultures just to look cool. They've been berated consistently by the Native American communities for their tendencies to wear sacred headdresses and war bonnets just because they look cool.

Unfortunately, this is closer to someone wearing the pope's mitre because they think pointy hats look cool, and to the Native Americans, it comes off just like blackface. With the deep hip-hop roots and urban theme running throughout Beats look and PR campaign, we might just see hipsters making the shift from headdresses to kente cloth.

#6 The Irony Is So Meta, Even They Can't Grasp It

#6 The Irony Is So Meta, Even They Can't Grasp It

This is a big deal in many ways. And here by they, we are referring to Hipsters. So imagine we have a hipster with his new B/A headphones. He plugs them into his brand-new MacBook Pro or may be a newly launched iPhone, supplied with Beats audio. The cans set him back a cool five bills, and the compy took him back a ten-spot, 'cause he's going into video editing at junior college. Both purchases combined netted Apple a 766% profit margin minimum, and thanks to Apple's already outsourced labor force, his new headgear only cost about $20 to make. How cool is this?

#5 It's all about algorithm

#5 It's all about algorithm

Well absolutely! Apple is intrigued with Beats Music's approach to compiling playlists to suit the individual tastes of each subscriber.

Infact, Rather than just grouping songs by genre or relying on toneless algorithms that analyze past listening habits, Beats also draws upon the knowledge and ears of tastemakers such as Beats's co-founders - rap music pioneer Dr Dre and longtime recording industry executive Jimmy Iovine (who has been an engineer or producer on seminal albums made by Bruce Springsteen, Tom Petty and Dire Straits). Its Algorithm folks.

#4 A boost for iTunes Radio

#4 A boost for iTunes Radio

As mentioned above, This is a very smart decision of collaboration. Apple is the top seller of songs downloaded over the internet and has attracted 40 million listeners to its free iTunes Radio service since its launch eight months ago. But neither of those resonates with music lovers like a classic album or a playlist tailored for a person's mood at a particular time, according to Eddy Cue, the head of iTunes. This is going to be a very successful apple venture.

#3 Money to start pouring in from October

#3 Money to start pouring in from October

Rich is gonna get richer. Cook says Beats is already profitable, six years after Iovine, 61, and Dre, 49, started the company. After generating $1.1 billion in revenue last year, Beats's sales increased by 30% during the first three months this year, Cook said. He expects Beats to boost Apple's earnings from October

#2 Steve Jobs's love

#2 Steve Jobs's love

After all he's the man behind Apple. Iovine has disparaged the technology industry as "culturally inept," but he says he has always thought of Apple differently since he first met the company's late co-founder, Steve Jobs, to discuss the state of digital music in 2003. Cook, who worked closely with Jobs before succeeding him as CEO in 2011, says the admiration was mutual. Jobs "knew Jimmy very well and he loved Jimmy very much," Cook said.

#1 Tim Cook's stamp

#1 Tim Cook's stamp

This might have played a very big role in the deal. Many Apple watchers are convinced that Jobs would have never have bought Beats, no matter how fond he might have been of Iovine. Jobs, who died in October 2011, was famous for hoarding cash and when he spent money, he preferred investing it in research that would enable Apple to innovate on its own. Cook says he tries not to ever consider what Jobs might have done if he were still alive, but he insists that his predecessor wasn't as resistant to acquisition as most people think. "We have never been anti-acquisition," Cook said.



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