Beats Music may have been looking for better ways to stream audio within the home, but the project was reportedly scrapped or put on pause when Apple bought the company last year.
The project would have seen a large wireless speaker for the living room being released, followed by smaller speakers for other rooms in the house. This would have put the company in direct competition with Sonos when it comes to Wi-Fi-connected speakers.
Unfortunately, it seems as though the speaker, which would have used Bluetooth and near-field communication as well as Wi-Fi, just wasn't working out for the company, and it ran into manufacturing issues. In particular, the company reportedly wanted to build the wireless chips from scratch rather than buying them from other companies, but it had some trouble building these chips.
Because of these issues, Apple, likely in consensus with executives at Beats, decided to put an end to the project, although it is unknown if the project is permanently dead or just on extended hiatus.
Of course, putting the project on hold was also likely because of the fact that Apple primarily wanted Beats for its streaming technology and the people behind it, namely Jimmy Iovine. Beats' hardware business has somewhat slowed since it was bought by Apple, really just offering some new headphone colors.
Not only that, but Beats hardware division has become significantly smaller since the Apple acquisition. Also, chief product officer T.J. Grewal and head of loudspeaker engineering David Titzer have both left the company. Of course, this may be because Apple already has enough brainpower when it comes to these areas.
Music hardware is clearly a profitable business and one that Apple could greatly benefit from entering. Headphones are popular, as are connected home devices. A wireless speaker system for the home could be a big deal for the company, and Sonos is clearly doing well with the concept. Because of this, it would not be surprising to see Apple eventually revive the project, especially with its experience in wireless devices.
In fact, the news comes only a few days after it was revealed that Apple's streaming service would not be compatible with Sonos speakers, an announcement that was likely frustrating for many users, but one that could suggest Apple's imminent entrance into the market.
Apple has had trouble with speakers in the past. In 2007 it discontinued iPod Hi-Fi, and more recently it announced a recall of the Beats Pill XL speaker because of a possible fire hazard.
