Why is Beats Electronics so important to Apple?
According to the analysts who jumped to share their thoughts on this mysterious deal (which, by the way, wasn’t yet confirmed by neither Beats, nor Apple), Dr. Dre’s company recently introduced a music streaming service that aims to compete with major similar streaming options available, including iTunes. While it is too soon to assume that Apple is trying to eliminate the competition in the oldest fashion in the book – by buying it, those who reported about the negotiations also consider that the supposed acquisition is a strike of genius from Apple’s part:
For Apple, meanwhile, a Beats acquisition could help it continue to dominate in digital music, where it has reigned supreme since its launch of iTunes in 2001. Digital sales on iTunes have been declining steadily in recent years, and Apple has long been rumored to envy an all-you-can-listen streaming music service, similar to those offered by upstarts Spotify and Rdio.
Moreover, it is clear that Apple won’t just put their logo on the future Beats products, but has a more complex agenda in this case. Given the stronger competition the tech world witnesses nowadays and given the fact that Apple didn’t quite come up with new, spectacular products recently and, above all, given the fact that Beats Electronics sound technology can be incorporated into smartphones (just as it happened in the case of HTC One which features Beats speakers), it is obvious that Apple thinks and aims big related to this new purchase:
The Beats deal, which was earlier reported by The Financial Times, also suggests that Apple may want to shake up its approach to digital music.
While we don’t have any confirmation that the rumors and reports are indeed true, some people say that the deal could be closed no later than next week, so all we can do right now is wait patiently for the upcoming news.