lunes, 12 de mayo de 2014

Apple and Dr. Dre

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The Financial Times was the first to break the news and say that Apple is negotiating the purchase of Beats Electronics , which was quickly confirmed by sources of Bloomberg , Wall Street Journal and Re/ode. According to these publications, the deal would be watching next week confirmed and close the Apple 's largest acquisition to date , worth 3,200 million.

Immediately, everyone started asking what Apple sees the company founded by the famous rapper Dr. Dre and music producer Jimmy Iovine. Will the flashy music head? Will it streaming music service? What is missing from Apple and it is found in Beats Electronics? For some, it comes to acquiring a company whose profits and generous margins marry perfectly with the business of Apple, others interpret that Apple desperately needs something to patch the drop in music sales on iTunes.

The potential of Beats for Apple

When a company buys another, our part of the brain responsible for imagination takes flight. From buying Beats by Apple confirmed, would be bringing their hardware section:

  • Headphones for music: Apple renewed the design of the headphones that come standard with the iPhone and iPod showing the EarPods at the launch of iPhone 5. Apple could exploit the technology and know-how to create Beats external headphone brand that Apple sold separately. 
  • Speakers: Beats Pill is a portable speaker that works by bluetooth. Apple tried to enter this field with your iPod Hi-Fi but withdrew the product shortly. It was clear that this was not it thing.
  • BeatAudio: few know that Beats has licensed this technology to car brands like Chrysler.  The Chrysler 300S features a premium sound kit technology company. Given that Apple is in full swing with it CarPlay not be strange if they had some kind of integration in mind and presence in our cars in the future. 
Then there is the software part, which has curiously been the least discussed in the beginning, but that seems to be gaining momentum. In Appleismo already talked Beats Music, yet another streaming service for iOS and OS X sucking a piece of cake. Although the business model of Spotify and company continue to generate many questions about its profitability, the fact is that it is removing presence iTunes and Apple does not have a streaming service itself. iTunes Radio and iTunes Match are two services that do not supply this lack in so Apple Beats Music can be very interesting to Cupertino.

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