Apple looking to buy Beats for a whopping $3.2 billion



In case you haven’t been paying attention, Apple’s got a lot of money to throw around. So much that they’re now reportedly in talks with Beat to acquire the company for a whopping $3.2 billion. This information was detailed in a report of the Financial Times who, along with Bloomberg, and The Wall Street Journal, says the deal could be announced as early as next week.

We’ve heard: “Apple sucks,” and Beats follows close behind gunning for top honors in companies that overcharge for their sub-par products. So what will Apple gain from the deal? Aside from a hip new brand image (that is the only reason people buy Beats headphones, right?), pretty much everything Beats related. While it’s still early to say whether or not the Apple iPhone 6 will come with Beats Audio inside, Apple does get Beats streaming music property, as well as their hardware (headphones, speakers) as part of the deal.

Most of you have been around long enough to remember HTC buying up 51% of Beats stock back in 2011 for $300 million, only to sell those shares back to Beats a little over a year later for $265 million. If you ask us, sounds like Apple could be overpaying.

[The Verge]

Chris Chavez
I've been obsessed with consumer technology for about as long as I can remember, be it video games, photography, or mobile devices. If you can plug it in, I have to own it. Preparing for the day when Android finally becomes self-aware and I get to welcome our new robot overlords.

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  1. How does the saying go?

    Marketing machines with widely over-priced products flock together.

  2. Then they will sue HTC over their old phones having Beats audio.

    1. I totally see this happening. Surprised they haven’t started suing people for CALLING other folks. Because you know, they invented that function as well.

    2. Would they be able to do that? If they do that AND win, I give up. Like I would straight up give up.

      1. It’s Apple, look at what they’ve done to Samsung over broad and obvious patents, imagine what they will do with actually valid ones

  3. I honestly feel bad for people that buy these things because “they look cool” instead of spending that $150 (or more) on a quality pair of headphones.

    How conformist are you? Seesh

    1. Personally I am looking at purcashing a set of Audio-Technica ATH-M50x Professional Headphones for $170 myself

      1. Get them!!! you wont regret will have these for years…

        1. Currently have the Velodyne Vfrees which I got for free thanks to CES this year. But the issue is they are way to tight on my head and my ears start hurting after only a moment of wearing them.

      2. Just saved that name to Keep. I will be looking up those later.

        1. Look them up on head-fi. For the average person, you should be looking at the ATH-M50 (x is nice, but not necessary for everyone). If you’re on a budget, the Monoprice 8323 (108323 on Amazon) are godly. They’re about $30, but the first significant step up in quality is the ATH-M50 series. I cannot justify spending <$125 on any headphone other than the Monoprice unless you're looking for a VERY specific feature set or sound signature.

          1. I’ll look ath those Monoprices headphones, then. I really just want noise-cancellation. Beats gives that vibration kinda bass, but it needs batteries.

            I have ViperAudioMod, so it really doesn’t matter what headphones I use. My little cheap $10 ear buds sound good. LoL!! But I want something over-the-head. I just like the style of them.

            I’ll upgrade to those ATH-M50’s if those Mono’s aren’t good enough.

        2. you will never go back..I had mines for more than two years…..

      3. I’be heard those are supposed to be excellent. I’m rocking Superlux-HD660’s because I’m cheap =).

        They sound great though! (Got them for $60)

      4. Have a pair and they are damn good, with the right music you can hear the ambient sounds and everything else, my go to test is Pink Floyd’s High Hopes from the Division Bell, ripped in FLAC, starts with some low ambient sounds, then a bell, piano, bass and the vocal tracks and builds to the whole band, everything is crisp, clear and discernable

    2. I agree. My brothers both have Beats by Dre headphones. Tell me why they borrow my ATH-M50s at home and then take their beats by Dre to school. its like it is more of an accessory rather than being a functional piece of hardware..almost like…almost like……Apple!!!!

      1. Accessories have their place. If I’m running around all day, I’m not wearing a bulky, clunky, ugly, uncomfortable, giant set of cans. If I’m sitting at home, mixing audio, that’s a different thing. I don’t get why people don’t understand that.

        1. Because the Beats and the Audio Technicas are about the same size, just that the Beats are fancy looking crap sounding accessories and the ATH are quality sounding, good looking devices without the hipster cred

          1. Um, no. The Audio Technicas are similar in size to the LARGEST, Beats Pro headphones, but you are aware that Beats has MANY models…in smaller and sleeker form factors. You apparently find it extremely hard to understand, but some people actually don’t want to run around the streets, in the scorching sun, with giant, fugly studio monitor headphones. Those belong….in the studio.

    3. I mean I don’t think it’s about looking cool. Sure then being in style has some influence but how many headphone commercials do you actually see? If one wants some loud ass headphones and they hear beats are loud and they go to the store and it sounds better than what they already have then they might get em.

    4. LOL. I honestly feel bad for people who purport to know why people enjoy what they enjoy and think only what suits their personal needs is “quality.” Beats offers MANY models and they all offer different experiences. Additionally, Beats, like Apple, offers its consumer much more than just an audio experience. Yes, the average consumer does care about look, feel, design, portability, features, software updates, customer support, packaging, included accessories, etc. Your snobbery is just silly. It’s like saying, “I feel sorry for someone who bought that Gucci watch when they could spend a little more and get a Rolex.”

      1. No, what I’m saying is, they could have spent $40 to get the same or better quality than buying something that is $150. I’m very frugal myself. I think you took my thoughts out of context.

        The way you stated that, you could almost consider Apple users snobby. They could easily get a good if not better experience on a Nexus 5 (for cheaper), yet because of brand loyalty, and general conformity, they chose the iPhone because its what all their friends have.

        I care about quality/value while you have a different view, that’s all.

        1. I’ll post this again: “Additionally, Beats, like Apple, offers its consumer much more than just an audio experience. Yes, the average consumer does care about look, feel, design, portability, features, software updates, customer support, packaging, included accessories, etc.”

          Now, I ask you to show me a pair of $40 headphones that offer “the same or better quality” audio as well as all of the features I listed above. It doesn’t exist.

          1. Well, seeings how Beats headphones look stupid, I miss your point. And packaging? Seriously? Just wow.

          2. Clearly you miss the point, as you are in the minority. The bottom line is that your opinion on Beats is irrelavant as Beats hold 59% of the market and had sales last year in excess of $1 Billion.

          3. Beats headphones get software updates?

          4. Yes.

          5. I’m sure any of the Superlux line would be on par.

  4. Can’t wait for Apple to buy Bose and Monster Cable, so when they (eventually) go bankrupt they will take all the purveyors of pricey crap with them!

    1. Don’t Monster Cable manufacture Beats? They at least used to.

      1. Not anymore.

  5. Both companies have an image, but no innovation.

  6. Could be? It sounds like they’re worth about 600-700 million. That’s practically 4 times what they’re worth. LoL!!

  7. crApple + Cheats by Dre< LG + Audio-Technica, HTC + Harman-Kardon, Samsung + Bose

  8. Beats are a terrible brand only because their audio is very bad compared to good quality headphones.

    1. Hmmm. Great marketshare, great brand recognition, high sales at high prices, year after year. Yea, sounds like a terrible brand to me.

      1. Just because lots of sheeple buy a product doesn’t mean its good.

        1. Same can be said for Android.

          1. Not really since Android is far better than iOS and Windows Phone 8.

          2. And Beats is far better than any other headphone…See, anyone can make a blanket statement.

          3. Android being better than iOS and WP is a fact, the numbers speak for themself, it is also a known fact that Beats are over priced hipster gadgets, ao not sure how two facts are now considered blanket statements

          4. Please stop. Your reasoning makes no sense. Using YOUR OWN reasoning, Beats is obviously better than any other high end headphones on the market and Beats’ superiority is a fact: the numbers speak for themselves.

          5. The functionality, customisation and variety of devices speak for themselves for Android. One phone to rule them all? F%$k Tim Cook and Apple. He’s the Sauron of the mobile world (with Steve Jobs having been Morgoth).

          6. Not just anyone can criticise an OS as exceptional as Android without pointing out actual flaws in the system. The iPhone was better than most phones that were available until probably 2011 (even though all us Android enthusiasts would be loath to admit it). After that Android finally started reaching its potential.

        2. It doesn’t have to be a good product in order to be a good brand.

        3. True. And just because even fewer sheep DON’T buy a product doesn’t mean it’s bad.

          1. Really? You think fewer people don’t buy Beats than those who do?

          2. Beats holds 59% of the market. Everyone else hold 41%. 41 is less than 59. So, yes.

    2. Their audio is very bad… hmm, are you drunk?

      1. No, he’s technically correct. Their sound reproduction is not on par with other headphones in the same price range. Even Bose offers better quality sound than Beats at the same price point.

        You may “like” Beats. You may love their brand. I don’t know. But sonics and acoustics can be measured, and Beats comes up short on technical merits. But hey, they’re stylish and have a nice advertising budget :)

        1. Actually, no one set of headphones is going to offer “the best” sound quality for all forms of audio in all conditions. Enjoyment of music is a very personal, individual experience, and what you may like about one set of cans may be off putting to another. And while one pair of headphones may reproduce the strings of a concerto perfectly while reclining in your den at home, the same pair may sound like garbage playing back a bass heavy hip hop song, on the subway. People need to get off of their high horses, and stop thinking that there is one answer for everyone and everything.

          1. I got a pair of Beats from a trade, used them for a few weeks, and couldn’t stand them. For the type of music that I have, they just sounded terrible. I couldn’t hear anything over all the bass. I got myself a pair of V-MODA, and never looked back.

          2. And that’s perfectly fine. But understand a. for the type of music someone else listens to, they sound great, just as your model will sound terrible for the types of music someone else listens to. And b. Beats offers many different models, each offering a completely different sound experience.

          3. NexusMan, I apologize for an miscommunication between us. I’ll try to clarify.

            “Actually, no one set of headphones is going to offer “the best” sound quality for all forms of audio in all conditions.”

            There’s two types of measurements; subjective and objective. I was talking about objective, IE, recordable measurements. Compared to other headphones in their price range, Beats comes up way short. However, in terms of subjective measurements, or what someone “likes” or “prefers,” you are correct. However, I never said anything counter to this. That’s a separate argument and one that I would never make, simply because you can’t force your subjective views on another.

            So, given that your entire post had nothing to do with what I posted, can you please clarify just what, exactly, you disagreed with in my original post? :)

          4. The first half. Where you make no mention of objective vs subjective.

          5. NexusMan, you’re trying to create an argument where there isn’t one. I clearly stated: “But sonics and acoustics can be measured, and Beats comes up short on technical merits.”

            Given that my post was only 8 sentences, it makes little to no sense to add “objectively measured” to EVERY sentence. It was blatantly clear to anyone who read my post that I was not talking about subjective material.

            So now that we’ve cleared that up, we can both agree that Beats are inferior on a technical basis (as I clearly stated) and preferred by many on a subjective basis (as you stated, and as evidenced by sales figured) when compared to headphones at similar price points.
            However, because you cannot comprehend simple sentences, I’m editing the original post for your benefit.

          6. It’s not an argument. You asked a question and I responded. And now, you are attempting to argue because you don’t like my response. I am fully aware of what you wrote, there’s no need to keep reiterating it. Ultimately, my point is, that “real people” don’t care about technical sonic and acoustic measurements. Real people care about, “how do they sound.” Which is why Beats holds 59% of the market. Because 59% of those consumers think they sound great.

          7. In summary:

            Me – Beats are not as good as other headphones at their pricepoint on a technical/objective basis.

            You – You’re wrong, Beats are better on a subjective basis.

            Me – I never argued that. Are you confused? Let me clarify.

            You – I’m going to pick a fight anyway.

            I never asked you a serious question. I made a statement, you clearly misunderstood it and argued it on a false basis. I was CLEARLY talking objective. You wanted to argue subjective. Two completely different things.

            So I’ll end this argument with what I said before; “We can both agree that Beats are inferior on a technical basis (as I clearly stated) and preferred by many on a subjective basis (as you stated, and as evidenced by sales figured) when compared to headphones at similar price points.” So now that we’re in 100% agreement, this is over.

          8. “So, given that your entire post had nothing to do with what I posted, can you please clarify just what, exactly, you disagreed with in my original post?” THAT’S a question.

            “The first half. Where you make no mention of objective vs subjective.” THAT’S an answer. It should have been over after that.

          9. Well said!! Me personally, I like the added bass a little.

        2. They are also loud. I like loud. Still out of my price range for headphones but I enjoy their sound.

          1. If you enjoy their sound but want something cheaper, I’d suggest looking an anything by Kicker. They have a similar bassy sound (but not as much) to Beats at a fraction of the price, but offer more accurate mids. If you end up liking the Kicker HP541s, you can opt to pay half the price and get the Monoprice 8323s, which are the same headphone, just rebranded and for about $30.

          2. Thanks for the recommendation. I actually break my headphones all the time so I make sure I consistently get cheap ones Lol.

        3. I own both and my Beats sound better than my Bose. My Bose does have better noise canceling, however.

        4. Nexusman just got called a moron about 10 times, haha.

      2. I’m thinking you’re about a hair’s breadth away from getting banned, douchefag.

        1. And I’m beginning to think you like men… why are you “following” me on Disquis?? That’s plain creepy for someone who literally hates everything I post

  9. Apple isn’t overpaying, the idiots at HTC just undervalued and ruined what was originally an ingenious move to purchase.

  10. Can’t see myself where apples on the side of my head at the gym.

  11. Their over paying. I don’t buy beats anyway.

  12. Apple iOS devices aren’t BAD they’re just locked down. The build quality is good and the price is in line with equivalent high-end Android devices.

    Beats is overpriced and of poor quality. We’re comparing apples and bowling balls.

    1. Apple, along with millions of others disagree.

      1. And most importantly out of those millions there are at least a few thousand reasonable, intelligent people who aren’t complete fools.

      2. Scratch that. Misunderstood your comment.

    2. No one would pay more than mid-range price for an Android with a 4″ display with 640p resolution.

    3. Beats isn’t really poor quality, despite what fake internet audiophiles want to pretend. The have a pretty solid build quality, and decent sound (actually, very good sound, if your primary focus is bass-heavy music).

      Yes, you can get something better for half the price, but pretending they’re “poor quality” just makes you look foolish.

      1. i enjoy the sound of beats but i can argue about build quality. I was given some ear buds as a gift and after 6 months one ear lost its sound and 6 months later the other one goes in and out. My girlfriend’s little sister also had a pair of over the ear ones and those broke pretty quickly too. Small sample size, but out of the 4 people i know who have had a pair, 2 of them broke… those arent good numbers.

      2. Meh, my $100 Velodyne earbuds outperform beats in the entire sound spectrum.

  13. From what I gather, Apple is interested in Beats because of their connection with the music industry. Jimmy Iovine, the CEO of Beats, is also the chairman of some of Universal Music Group’s labels.
    So perhaps, Apple is trying to make better deals with the record labels for iTunes content.

  14. Looks like Dr Dre will be getting his Clippers money after all.

  15. Waste of money, but I’m glad it’s Apple wasting money on Beats.

    They deserve each other.

    1. My thoughts exactly. Douchebag marriage made in… wherever douchebags hang out…

      1. 1 Infinite Loop, Cupertino CA.

    2. Just like that douche guy and superbitch girl we all know one of.

  16. I didn’t think beats could get any more expensive… Okay products for best (read highest) price in the industry!

  17. I came here for the lil wayne pic.

  18. anybody think those beats cans sound better than my klipsch earbuds?

  19. Doooh!! And HTC just did THE BIGGEST facepalm in the history of the world!

  20. I think it’s got more to do with the streaming service than hardware. Their Beats Music service is actually pretty good. And Jimmy Iovine is pretty high up in the music industry so that will give Apple an advantage there. Apple could also overhaul the products, and use the Beats brand recognition to their advantage. I don’t think it’s as stupid as most of you do.

    1. “I think it’s got more to do with the streaming service than hardware.”

      This. Apple brought online music to the masses, and then got left behind by Pandora, Spotify, and the rest. They really need a drastic move to get beyond the download-only model (yes, they have iTunes Radio, but it has zero user base compared to the competition).

      And since Apple is generally terrible at building their own online services, their only option is to buy their way in.

      Finally, let’s face it: If they were interested in buying a headphone hardware company, Beats wouldn’t have been in the top 10.

      1. Your last sentence sums it up perfectly. There are many better choices if they were concerned about the quality of the hardware. :P

    2. +1 Its for streaming.
      Just shows the level of phandroid readers…>.>

  21. htc’s sloppy seconds. Be proud Apple, be proud.

  22. Apple will immediately begin suing anyone who has ever sung “Turn the Beat Around”

  23. Theyre both special in that theyre overpriced garbage with a big name attached.

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