Apple acquired Beats electronics for a whopping $3 billion. This deal is being touted as Apple’s most expensive deal ever. Tim Cook, the CEO of the technology titian wore a happy face when he announced about the deal to the world on 28th May 2014. This deal means that the company will get its own line of hip and trendy headphones which are already famous among the youth for its thumping bass sound and good appearance. The company also sees great potential in beats music streaming service which is still in its developing stage and is very excited about the same.
Here are 5 most important things which you must know about this deal.
1) Job’s love
Jimmy Iovine of Interscope Geffen A&M had regarded the technology industry as being “culturally inept”. But according to him since his meeting with Steve Jobs, the late co-founder of Apple in 2003 to discuss the condition of digital music, he held a different view of the company on whole. According to Jimmy, Jobs understood and respected the industry and music.
2) Tim Cook’s Approval
Many Apple watchers and loyalists are sure of the fact that Jobs would have never went ahead with deal no matter how much he liked Jimmy. Job’s has all his tenure been famous for accumulating cash. He only believed in spending on research which would enable the company to innovate on its own. But Cook dismisses this rumour and insists that Apple has never been anti-acquisition.
3) Mixing Emotions with Numbers
Apple has always been fascinated by beats music approach in which it compiles playlists according to an individual subscribers taste. Beats takes care of the ears of the tastemakers rather than relying on toneless algorithms or just grouping songs by genre.
4) Filling the Empty Space
iTunes Radio has been able to attract around 40 million listeners to its free service since it was launched eight months ago. Apple has also been able to gain the spot of top seller of songs downloaded over the net. But nothing matches with a playlist tailored made according to a person’s mood or taste or a classic album for music lovers and enthusiasts. With this acquisition, Apple will be able to fill that void and find a permanent space in the hearts of all music lovers.
5) Big Bucks
Beats generated around $1.1 billion in revenue in 2013. It sales have seen an increase of 30% during first three months of this year. Thus, Beats is already profitable. Apple anticipates that this acquisition will further boost Apple’s sales.
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