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  • harshrk 7:27 am on May 10, 2014 Permalink | Reply
    Tags: Apple, Beats, IPhone, iPod, iTunes, iWatch, Music   

    Why did Apple buy Beats? 

    By now there have been so many theories put forward by Apple bloggers and fans alike about why did Apple spent $ 3.2 billions – the highest amount paid for an acquisition ever so far by Apple – to purchase Beats. Some of them said that Apple wanted to catch up competitors in streaming business hence they bought Beats. Although it ‘beats’ me (pun intended 🙂 ) that why they didn’t go for Spotify instead? Money obviously is a non-issue for Apple who has been hoarding a massive cash pile of $160 billion (much of that overseas). So I personally don’t think that could be the reason (at least not the sole reason).

    Some bloggers say that they bought Beats because of their lion’s share in the headphones business ( a whooping 60%). Although I would never buy such a weak and misguided reason as the motivation behind this deal. Folks, Apple’s core business is to make technologically advanced, innovative, user friendly but high-end, premium products which are technologically complex. A company which merely controls about 20% of the overall mobile phones market in terms of volume but pulls in 86% of all the profits made by the industry couldn’t care less about a basic, low technology, low profit product like headphones.

    Although some bloggers did mention few very interesting points. Beats is a brand popular among teens and youth segment (and Apple bought Beats to target future products specifically to these two segments). On the face of it this argument comes across as an attractive proposition. But I cannot believe it for a second. Lets step back a little bit. Apple ‘brand’ does not appeal to teens and youth segment? really? – what data these self proclaimed pundits have to back this argument. Have these bloggers watched 1000s of customers from these very two segments standing in the queue for days every time a new iPhone model is launched? Walk in any of the Apple stores at any time and you will find at least 30 to 40 % of the crowd is made up of these two segments.

    I agree that Beats is popular among teens. But I would contend that Apple products and brands like iPod, iPod-touch, iPhone and MacBook Air are equally or probably more popular among teens. So this argument doesn’t fly with me anymore.

    Some have stretched this ‘branding’ argument further and have speculated that Apple may use Beats brand to launch the planned wearable device. Personally I find this insane leap of faith very offensive and completely out of touch with the reality of Apple as an iconic organization and brand. The very reason Apple has never acquired a big company, a big brand is that they do not want any other brand/s in their portfolio – under the umbrella brand ‘Apple’ – which are truly not their own, which are not conceived by Apple. Would you as an Apple customer buy an iWatch or would you buy a Beats watch (or is it iBeats). This whole argument if absurd and futile attempt by their proponents to connect the dots just for the hake of it.

    I personally have not been able to come up with any good reasoning as to why Apple bought Beats. However I am going to take a stab at it anyways, hope apple fans out there don’t mind. I feel that Apple is going to develop a separate line of accessories for their main products – iPhone, iPod, iPad and potentially iWatch. Putting a brand name other than the umbrella brand Apple on the accessories products would make more sense if Apple is planning to expand this business. Simultaneously Apple will merge/dissolve Beats’ streaming business in to iTunes before you even notice that this is being done (remember their acquisition of Lala.com?). Thirdly Apple would leverage/exploit the connections, rapport, influence and wisdom of Beats’ legendary founders to forge new business alliances and reinforce existing alliances in the music industry. This is how the Beats acquisition is going to play out for Apple I think. Of course I could be wrong on some or all of the counts but I am sure whatever they do, they will never ever dilute the Apple brand by raising another brand for their core products. iWatch will never be launched as iBeats, be rest assured about that. What would Steve do you think? Do you think he would ever allow such kind of an insane proposal? I am sure, Tim would not even dare to think on these line in his dream or even if he did, in the same dream he will immediately find himself fired (by none other than Steve himself) :-). Cheers.

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    • noisynoodle 7:35 am on May 10, 2014 Permalink | Reply

      I wasn’t thinking about it too deeply, I was just hoping they’d bundle some decent headphones along with their products 🙂

      • harshrk 5:04 pm on May 10, 2014 Permalink | Reply

        True. The earbuds and the earpods could never be really called as great earphones to accompany iPhone or iPod. Let’s hope that changes with this acquisition.

  • harshrk 6:20 pm on August 11, 2013 Permalink | Reply  

    Ready Steady Poda 

    Ashish Shakya

    Chennai Express hit theatres this week, on the occasion formerly celebrated as SUV Nikaal, Bhai Ka Pikchurr Aayela Hai. The release brought joy to millions, because it meant that Shahrukh would finally stop with the zillion promotions that made the Ra.One marketing blitz look like a Baba Bangali poster.

    Now here’s the problem with talking about Rohit Shetty films: Your criticism doesn’t matter, just like his scripts. I’ll make all the jokes I want, knowing full well that Rohit Shetty will read them on a golden toilet while pooping diamonds. (Although I don’t think these guys read anyone apart from the venerable Mr. Adarsh, who probably described the film as “DROOLTASTIC AMAZEBALLS ROHIT BHARO MAANG MERI BHARO!”)

    Chennai Express runs for 143 minutes, where each minute feels like an hour spent with your nose wedged into a Dadar armpit. Thankfully Deepika looks smashing, whether she’s in a saree or a…

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