Apple finally announced that it plans to acquire Beats for $3 billion, a move that is still deemed as confusing and unnecessary for Apple. However, in the eyes of all parties involved, this is a good thing, and it should help to improve Beats products and Apple's bottom line.
This acquisition is Apple's largest in its history, which means the company must have given it some thought before going full force ahead. The reason for Beats purchase is more than likely how popular the headphones are with young people, and because Beats co-founders, Dr. Dre and Jimmy Iovine, might have what it takes to bring more style and flair to Apple devices.
"It's not about what Apple is doing today or what Beats is doing today, but about what we can do together," says Apple's Senior Vice President for Internet Software and Services, Eddy Cue.
It is clear that Music played a big role in the acquisition as Cue mentioned that Beats Music streaming service and the company's "amazing premium headphones" are one of the things Apple loves about Beats.
At the moment, Beats Music has over 250,000 subscribers, which is pretty impressive for a service that is only 3 months old. With the help of Apple, we expect this number to increase substantially, especially since the subscription fee has been slashed from $119.88 to $99.99 just hours after the acquisition announcement went public.
"Everyone in the music business wants curated music done right, and Apple is the right company," says Beats co-founder Jimmy Iovine.
Beats could even be an important factor in the upcoming wearable gadgets market, and we believe Apple took this into consideration before it made the final ink on the paper. Imagine Apple selling wearable devices with the Beats brand? Young consumers would eat it up.
We have a clear idea what Apple plans to do with Beats when it comes to streaming music and using the brand to push its wearable devices, but we're not certain what Apple plans to bring to the headphone aspect. Chances are future iPhone, iPod, and iPad devices will come bundled with a Beats headset, something that would be a huge buying point for young consumers.
We were once skeptical about Apple's plan with Beats, but after analyzing the situation, we can now see how this brand could benefit Apple in more ways than one.
