Skip to comments.Dr Dre could be upping Apple’s cool factor in $3.2 billion deal to buy Beats
Posted on 05/09/2014 4:41:09 PM PDT by dennisw
If the deal goes through, it will make Dr. Dre the richest man in hip-hop, according to Forbes.
The deal would come as Apples sales are flagging, a problem that stems from a lack of major new products that bring consumers to Apple stores, according to an investor note from Needham analyst Charlie Wolf obtained by Apple Insider. Apple also faces intense competition from Microsoft, Google and smartphone maker Samsung.
Why splurge on Beats, which can cost more than $300? Part of the reason: the cool factor. Despite the hefty price tag, the headphones, a streetwise fashion statement with a signature B on the ear, are as popular with teens as they are with celebrities.
The Dre in Beats by Dre is Andre Young, better known as Dr. Dre. The Washington Posts Soraya McDonald has a refresher: He helped popularize West Coast gangsta rap, especially a sub-genre called G-funk, and was one of the founding members of NWA (Niggaz With Attitude). His 1992 debut solo record, The Chronic, is a classic within the hip-hop pantheon. Hes also credited with launching the careers of Eminem and 50 Cent when he signed them to his record label, Aftermath Entertainment. His is the sort of cool that doesnt fade in the wash.
(Excerpt) Read more at washingtonpost.com ...
I see T Boone Pickens has a sense of humor and tweeted a welcome to the 1% to Dre.
What are the chances Apple just shuts this service down? A few years ago they bought an innovative music service called Lala, and they shut it down within a year, and gained nothing from it. I honestly don’t know if Beats is good or bad, but these kind of acquisitions rarely seem to work. It’s just getting rid of competition.
look who is getting rich selling trashy hip-hop and rap to all be they blacks or whites. Maybe worldwide
The new economy. We don’t make steel but we know how to make and distribute trash, how to stream it and how to sell Chinese made (by slave labor) headphones for $300 that cost $20.
If this country is so racist then how come Dr Dre is so rich
AAPL has no interest in Dre. His partner Iovine is the key to the acquisition. Iovine has innovative inroads in the digital music subscription business. Dre just got lucky, and really brings nothing to the table but name recognition.
Actually, I looked at and listed to a few of their products, and they are a good fit for Apple. IMO, they looked cooler and sounded better than their competitors; they seemed to be built better and they cost more. Sound familiar?
IMO, Jobs learned this from his stint at early/mid 1970’s HP - when HP was HP. HP’s product manuals actually stated, “we will build the best products regardless of cost”...and people will willing to buy those products. There will always be a market for quality at some elevated price. The question is, how much more elevated.
they get rich off the backs of stupid whites....period....”they’re” people don’t actually “buy” anything...
I doubt Apple will shut it down but it will “diversify” the music it will be streaming.
Beats by Apple and Dr Dre ....get used to it!
You better believe it! Young stoners, wiggers, white Obama voters and so on etc etc This Apple acquisition fits in great w pot legalization
Probably because he created a product that so people enjoy?
FR still supports capitalism, right?
Actually, Dre has been in the music business since the early 80s. He was part of a synth-pop group, World Class Wrecking Cru that brought a different type of funk and pop to the West Coast, much like what Prince did in inventing the "Minneapolis Sound."
Get ready for the next urban crime wave.
White kids wearing $300 earphones.
Those headphones are a running joke on every music engineering board I frequent. The top two complaints “Build quality is crap/fall apart soon after purchase” and “nothing but bass”.
They probably bought it for the sound technology that can be incorporated into its speakers.
Also any company Apple does buy, they can sit on that company’s patents for years on end. Just because they may have closed the company now does not mean it won’t be resurrected in some form five years from now.
Dre may have gotten lucky to get into the game, but you can’t stay in the game unless you have the props to do so.
“Those headphones are a running joke on every music engineering board I frequent. The top two complaints Build quality is crap/fall apart soon after purchase and nothing but bass.”
At the risk of being really ‘uncool’, I absolutely agree. Where’s the crispness? Where’s the treble? I’m amazed at how much street cred these things have. It’s nice to here that someone who knows a thing or two about sound engineering agrees.
The only thing I have ever heard a genuine sound engineer say about them is that they are a good reference for checking low end/sub bass. Which is all most Rap/hiphop is today...their intended target. But NEVER for anything else.
Personally I have a set of Beyerdynamic DT880s. They aren’t Stax or Senn HD800s, but they are damn good across the spectrum.
By first listen was ‘icepicks’ but they broke in smooooooth yet detailed.
They are total garbage and the laptop speakers are nothing more than a label. Its as bad as Bose. Nothing but name recognition.
I’ll stick with sennheiser and audio technica.
The AT H50s have a hell of a rep for a third the price of Dre’s crap. Many pros swear by them even with higher end options available.
Don’t look up Stax then ;)
Yes, the 800s are awesome. Worth it if you can afford them. The next leap up is scary though.
I remember when Beats were first introduced and my kids were all nuts over the headphones. I figured that it wouldn’t last long — what’s a brain-dead rapper know about music and technology? Was I ever wrong. I’m impressed by what he’s done.
I also remember going to a Silicon Valley lecture around 1996 by a young guy named Pierre Omidyar who talked about conduct auctions on the Internet. I thought to myself — “Yeah, sure. That’s nuts. Who’s going to buy and sell stuff online when you’ve got perfectly good classified ads and garage sales in your neighborhood?”
If you want to know what’s going to be hot next, just ask me and I’ll proudly share my wisdom.
Let me qualify that a bit.
At that level, it is a game of microns. Are they worth 1K more than My 880s?. Not to me. But they DO sound better/clearer/more defined. Just not 1k worth ‘for me’.
You’re like me in this regard. I only think it’s a good idea after it’s made its first billion. :)
Thanks! No doubt true. Dr Dre name recognition-street cred is the key to marketing beats to blacks and urban whites but Iovine is the brains behind the operation. BTW I know he was a very well known rock producer (in a previous incarnation)
Now I know what makes Beat tick and why Apple really bought Jimmy Iovine
I have a set of Bose which I like very much.
BTW I type just “Jimmy I” into google and the first auto-complete is Jimmy Iovine
A joke indeed. I haven’t spent a lot of money on my IEMs (Audeo Phonak, Brainwavz B2), but they blow away any of the Beats garbage...for less.
Time to sell. No Jobs. No Apple.
I used to work for them. Their headphones are excellent, especially the ones with active noise cancellation. Like Apple, you get what you pay for.
If you want on or off the Mac Ping List, Freepmail me.
“The deal would come as Apples sales are flagging, a problem that stems from a lack of major new products that bring consumers to Apple stores”
Correct. Yep, and all of those revolutionary products where each and everyone of them brainchildren of Steve Jobs.
After reading Jobs biography, “Steve Jobs” by Walter Isaacson, it was evident that Apple would coast along on Jobs’ genius for a few more years and then basically come to a grinding halt as there was no possibility for them to ever again revolutionize the world like Jobs did.
The fact that the best they can do at this point is spend billions of dollars on some “rapper” tells you just how intellectually bankrupt they’ve become.
It will revolutionize the way we view video content.
I don't think so. Have you been to the big box stores lately? All the big TVs are featuring Internet-ready. Right out of the box, you can watch YouTube, Netflix, etc. Apple has been doing this with a puck called Apple TV for years that you connect to your big-screen TV. Not much reason for Apple to kill their own market for the Apple TV puck, unless they want to do away with the puck. That puck is only $100, attachable to any HDMI-ported TV. As I said, you can go to a big box store like Costco, plunk down a few hundred and view all the content you want off the Internet, without a puck like Apple TV or Roku.
Good for Dr. Dre.
Probably because he created a product that so people enjoy?If this country is so racist then how come Dr Dre is so rich?
Probably - but although that would be necessary, it would not sufficient if the premise of the question - i.e., if the country is racist - were true.FR still supports capitalism, right?
Yes, and considering that racism is inconsistent with FRs brand of capitalism, Id say that dennisw has made his point.
I am not bullish on AAPL's long term prospects either, but as I said in an earlier post on this thread, this acquisition is more about music subscription services than Dre or headphones. If it was they could have easily bought another superior company at much better cost.
Making Iovine basically an employee of AAPL is not a bad move.
They probably bought it for the sound technology that can be incorporated into its speakers.
Not a chance ,, there is no new tech in “beats” ,, and I can buy better sounding headphones from a company without the hipster name for about $50...
“Pro-Apple?” post by one of Apple’s “admirers”... ‘-)
His work with Snoop on “Nothing But a G Thang” was an epic piece of music history. I think it is the perfect rap song and I don’t even like rap.
Try the .0001%
Apples expected deal to buy Beats Electronics for $3.2 billion is really about one man Jimmy Iovine.
The tech titan was so anxious to snag the 61-year-old music industry veteran that it made one of its largest acquisitions ever in order to do it, sources tell The Post.
In the business, its called acqui-hiring the acquiring of a company just to hire its key human assets.
Tim Cook, Apples CEO, hopes Iovine, the head of Universal Music Groups Interscope, Geffen and A&M labels, wants to blast the Cupertino, Calif., company into a new era in the music subscription streaming business.
Iovine helped the late Apple co-founder Steve Jobs create the multibillion dollar iTunes download business now 11 years old.
That model has served Apple well earning it boatloads of profits but downloads are now in decline and a new idea is needed.
Iovine is being drafted to drive Apple into the $1 billion streaming music business, which globally grew 51 percent in 2013, according to the IFPI.
Global download revenue fell 2.1 percent.
The electronics are a drag-along, said one music source. They want Jimmy and they wanted streaming.