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Post by phoebear611 on May 8, 2014 15:26:57 GMT -8
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Mav
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Post by Mav on May 8, 2014 15:45:59 GMT -8
Even if Beats was a "bad acquire" (way too early to say), Apple can probably finance 1 or 2 such buys each quarter based on US cash generation.
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Post by pauls on May 8, 2014 15:49:30 GMT -8
I think a Beats acquisition would be about subscription music. The popular and high margin audio hardware would be a bonus. Perhaps Beats deals with labels are better than Apple could get on their own? Apple already disrupted the music industry once--this time maybe cheaper to get serious about subscription through a smaller fish.
IRadio has been underwhelming. iTunes as a brand isn't as fresh as it once was.
Also, Beats cred among youth is worth something?
Last, a subscription model for music would pave the way into getting rev stream from Android and Windows phone users, something there is no pressing point to do with the largely value added nature of iTunes on mobile.
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chinacat
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Post by chinacat on May 8, 2014 16:01:25 GMT -8
My son is a recording engineer in LA. His quick take:
I think they are doing it for the streaming music service, which is actually really nice, with a lot of extremely well-curated playlists. I don't think it's really caught on much yet, though, so it could be perfect for re-branding as an iTunes streaming service if Apple wanted to go that route. Plus the headphones and speakers are surprisingly popular given the high price, and I'm sure they already get paired with iDevices as much as anything...
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Post by phoebear611 on May 8, 2014 16:04:08 GMT -8
I just hope that if it is definitely true - AAPL gets it done fast - and then they come out with a statement IMMEDIATELY to explain where they saw the value and what the future is for this acquisition. The last thing I want is for AAPL to wait till an event or an earnings call to comment on it. If AAPL/TC is being more transparent about earnings (as an example) - let's get out of the gate right away after an acquisition and comment about it asap. DO NOT let the media start to speculate and poo-poo it at the get-go without having a clue about the strategic vision.
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Post by appledoc on May 8, 2014 16:07:36 GMT -8
At least they aren't paying $19B!
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mark
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Post by mark on May 8, 2014 16:39:42 GMT -8
Luckily AAPL's allowed a mistake or two...IF it bought Beats. It *ahem* beats buying Nest. I don't think it beats buying Nest. Imagine if every owner of an iPhone/iPad purchased a "premium" mobile-integrated thermostat for their home. Especially if that thermostat could have 50% margins on it! Every home has a thermostat, some like mine have two of them!
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Mav
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Post by Mav on May 8, 2014 16:46:57 GMT -8
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Deleted
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Post by Deleted on May 8, 2014 17:29:37 GMT -8
Visited my local Apple Store. It appears any iPhone trade-in program is still "under development," if at all. In other words, it's a rumor only at this point. Apple staffers must follow the rumor sites like everyone else.
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Post by phoebear611 on May 8, 2014 17:31:51 GMT -8
Is anyone else here following the NFL Draft tonight? I'm thinking Johnny Football may become a Cowboy at this point. I keep flipping the TV back and forth to the Bruins/Montreal game...c'mon Boston!
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JDSoCal
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Post by JDSoCal on May 8, 2014 19:38:27 GMT -8
Nothing like a CNBC report to get me all cock-punchy: Unbelievable. The drumbeat over and over has been, "OMG Apple needs to make acquisitions with all of that cash!!!" Then Apple buys a company and now it's, "OMG, Apple can't innovate so they need to buy companies!!!" Response: Stupid CNBC monkeys.
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Deleted
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Post by Deleted on May 8, 2014 20:44:13 GMT -8
CNBC insulting monkeys, again.
It's ok that FB spends $19B on WhatsApp without a revenue stream, but it's not ok for Apple to spend $3B on one that does.
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Post by Deleted on May 8, 2014 20:47:51 GMT -8
Is anyone else here following the NFL Draft tonight? I'm thinking Johnny Football may become a Cowboy at this point. I keep flipping the TV back and forth to the Bruins/Montreal game...c'mon Boston! Johnny Football? That's a real player? lol. That's almost as funny as ex-Apple exployee, Sam Sung. Let's hope he's not a running back or it will be "Football runs the pigskin for three..."
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Mav
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Post by Mav on May 8, 2014 20:54:05 GMT -8
Someone either just has a lousier sense of humor than I do or he doesn't know who Manziel is. My initial overreaction to the Beats rumor was hearing now and then that their actual audio products weren't as great as they looked. Then I heard about Beats Audio on smartphones and laptops being about equalizer settings, which is basically a form of marketing. Apple does audio just fine. No doubt Beats Electronics is a successful business, though. And Apple acquires for tech and/or talent (I assume that includes connections/access). We'll see what happens.
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Deleted
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Post by Deleted on May 8, 2014 21:37:36 GMT -8
The latter, but the former can be true too Based on my reading, Apple buying Beats won't be received well tomorrow. I like John Gruber's take best: Average hardware and streaming without transferable licenses. Why $3B indeed.
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JDSoCal
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Post by JDSoCal on May 8, 2014 21:40:17 GMT -8
CNBC insulting monkeys, again. It's ok that FB spends $19B on WhatsApp without a revenue stream, but it's not ok for Apple to spend $3B on one that does. I've long felt that Apple has really needed work in the upsell department. I recall when I bought my iPhone 4, I wanted a protective plastic cover put on the touchscreen. The Apple Store employee directed me to an independent kiosk right outside, where friendly Asian girls with tiny little fingers put on my screen protector. For like $35. I was immediately struck by how much revenue Apple was just throwing away. Now, I realize that Apple selling such protective covers could be viewed as an admission the screens are scratch-prone. But some companies do market them as fingerprint suppressants. Today, in the gym, before I had heard of the Beats report, I was thinking how much I hate earbuds and the wires that they attach to. What an antiquated nightmare it is dealing with these little nooses. Every time I go to the gym they annoy me. Plus, the sound quality sucks, even for the aftermarket ones. I'd love for Apple to come up with a nice, low profile, wireless stereo bluetooth headset that connects behind the head or something, so it's barely visible. I know it's possible, as I have a rather bulky one that works fine that was introduced in 2005. So why doesn't Apple sell a wireless headset/bud thingy that is small and sleek, and adds like $99 to each iPhone sale?!?!!? Anyway, Beats does have some wireless headphones for $280, but I am talking about a headset with a mic. I think that price point is a bit high, but there has to be a middle ground for just the average person for like $99. Say what you want about streaming music, but I look at this acquisition and I am thinking hardware upsell, i.e., a higher average sale amount per iPhone buyer. Apple isn't just going to throw that nice Beats hardware into the trash, and spend all that money just for some streaming music service. Not for $3.5B! Edit: Gruber has his moments, but he isn't omniscient. He has no fucking idea what Beats' licenses say, or what IP it has in house that titillated Cook. Has he ever even used Beats headphones? If so, where's his review? I've found his site increasingly exasperating with his libtarded bullshit, and of course no comments section to tell him how full of shit he is. Lefties loooove to silence dissent. Gruber actually has a entire post rambling about the "sexism" of calling Katie Cotton "PR Queen." What an insufferable douchebag, which is why I took the Daring Fireball bookmark off my toolbar. I think it's fair to give Cook the benefit of the doubt on this one until we know the details, which may not fully emerge for years.
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Post by Tetrachloride on May 9, 2014 0:40:40 GMT -8
JDS,
I'm the exact opposite on your last paragraph. I do not give the benefit of doubt.
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JDSoCal
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Post by JDSoCal on May 9, 2014 0:52:56 GMT -8
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JDSoCal
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Post by JDSoCal on May 9, 2014 0:55:31 GMT -8
JDS, I'm the exact opposite on your last paragraph. I do not give the benefit of doubt. Well, OK then, I guess you've formed an opinion on Cook that is negative. But nobody outside of Apple and Beats knows WTH is really going with this deal. Apple doesn't seem to be the kind of company to waste billions for no reason, like, say Google, do they? I'm hearing a lot of observers going off half-cocked; I'd just like to know the facts before I draw conclusions...
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Mav
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Post by Mav on May 9, 2014 1:16:06 GMT -8
So would I. Cl4, yes Browett, and Maps (that's on Forstall though), mayyyybe iPhone 5 (arguably sensible reasons why Apple didn't go BigPhone 5 right away, plus Steve Jobs surely was involved in iPhone 5's planning) but Tim Cook's decisionmaking seems pretty darn good overall. I think the Browett brouhaha in particular made Apple think over any multibillion deal with Beats very, very carefully.
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Post by nagrani on May 9, 2014 3:40:34 GMT -8
I think apple is going way up today. Think about the gross margin beats has on their products post apple acq and how much revenue apple generates from selling iPhones has every year. Now imagine 10-15 pct of those buying an iPhone pay extra for a set of beats headphones.
I also think apple can create some sort of sonus solution with the beats acq. I really like this move on their end.
3 billion is chump change for apple so it's not a break the back acq.
We go up today IMO
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