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Apple looking to purchase Beats Audio for $3.2 billion as its innovation sputters

According to the Financial Times, and later vetted by other outlets, Apple is preparing to purchase Beats Electronics for up to $3.2 billion.

Beats is popular for their headphones and more recently their music-streaming service that competes with Spotify and other unlimited streaming companies.



Apple has long been rumored to be developing their own streaming service, but it appears they could not innovate quickly enough, which could prove to be a negative turning point in the ongoing saga of Apple, a company that has not released a truly new product since the iPad in 2010.

Through its iTunes store, Apple created the market for music digital downloads, but there are plenty in the industry that believe that model is dead. Streaming services, where subscribers pay $5 to $10 for unlimited listens of huge catalogs, continue to see strong growth, especially through mobile devices.

The company also has iTunes Radio, which is an ad-supported "radio" service similar to Pandora, meaning general music services remain a key theme for Apple.

Beats was founded by music producing legends Dr. Dre and Jimmy Iovine, and at $3.2 billion the acquisition would be the largest ever for Apple.

Written by: Andre Yoskowitz @ 9 May 2014 3:15

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• 10 comments

• biglo30

  Two overrated products to come together as one.
  

  
  

  9.5.2014 10:58 #1

• Ryberg360

  Originally posted by biglo30: Two overrated products to come together as one. Apple will just charge $100 more for the same over priced product.
  They are lazy, hence the iPhone.

  9.5.2014 16:10 #2

• pcrazy99

  Originally posted by biglo30: Two overrated products to come together as one. Exactly what I was thinking. All they need to do is bundle them with a matching pair of overpriced Air Jordans and the trifecta will be complete.

  9.5.2014 16:46 #3

• hearme0

  Originally posted by biglo30: Two overrated products to come together as one. Agreed!
  
  Beats by Dre is failing for one reason........people are now starting to realise that they are overpriced. Soul by Ludacris or Sol Republics are way more bang for the buck. Apple is overpriced by a long shot too.
  
  But as long as there are dumb people willing to follow the flock blindly, this crap will continue to sell.

  10.5.2014 10:15 #4

• xnonsuchx

  I would hope nobody would be buying Beats Audio for the headphones part of the business...they are very mediocre w/ many better alternatives for 1/3 the price or less.

  10.5.2014 18:52 #5

• Mrguss

  Quote: ....where subscribers pay $5 to $10 for unlimited listens of huge catalogs, continue to see strong growth, especially through mobile devices. Who pay for stream radio now on days & probably with ads !?
  

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  Capitalism: Funnel most of the $$$ to the already rich.

  13.5.2014 16:29 #6

• DVDBack23

  Originally posted by Mrguss: Quote: ....where subscribers pay $5 to $10 for unlimited listens of huge catalogs, continue to see strong growth, especially through mobile devices. Who pay for stream radio now on days & probably with ads !? Tens of millions of people pay for streaming services.
  

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  13.5.2014 18:52 #7

• Jemborg

  Originally posted by biglo30: Two overrated products to come together as one. I've heard that Beats were pretty crappy myself.... all hype.
  
  As much as I hate to say it... it's the same gullible crowd they're after. Kids that have been "softened up" by the ad industry from an early age.
  
  
  

  Its a lot easier being righteous than right.
  
  
  

  14.5.2014 01:22 #8

• KillerBug

  Originally posted by Jemborg: Originally posted by biglo30: Two overrated products to come together as one. I've heard that Beats were pretty crappy myself.... all hype.
  
  As much as I hate to say it... it's the same gullible crowd they're after. Kids that have been "softened up" by the ad industry from an early age.
  
  I think it is the paris hilton effect...people watch her because she is famous, and she is famous because people watch her. My phone before last came with Beats headphones and they were not as good as $11.95 headphones from Koss.
  

  
  

  15.5.2014 21:41 #9

• Jemborg

  That bad? Dre aught to be ashamed. It's all over the late shows how he made billions... tsk.
  

  Its a lot easier being righteous than right.
  
  
  

  16.5.2014 00:04 #10