One of the biggest stories of last month was Apple Inc.'s huge acquisition of headphones giant Beats by Dre. The deal was important for a number of reasons, including bringing Dr. Dre within $200M of being Hip Hop's first billionaire. This is only the beginning of huge possibilities that could come from the huge merging of companies.
With these types of buys it's easy to speculate how one company, typically the smaller, could fade quietly out of the public eye, left only as a credit in the fine print of the tech specs, if that. But we at Fueled don't see that as being the destiny of Beats in this particular situation, and for quite a few good reasons.
First, the influence of the Beats by Dre brand is undeniable. Despite conflicting reviews and Time Magazine ranking it near the bottom in sound quality of other competitors, as of 2012 Beats was the market leader with 40% of all headphones sales and 70% of premium headphones sales.
It's Beats' phenomenal marketing that has made them increasingly popular with the younger generation. From product placement in a number of videos and live-television events, to celebrity fans such as Lil Wayne and numerous sports professionals, even on to tastemakers like Karen Civil. Beats has established itself as more of a status symbol, or the heavy currency in a bull market of worthy contenders
On the inverse, even with Apple consistently in the top 3 of the World's Most Valuable Brands, outlets like CNN5, BGR6 and CNet7 (as well as Apple consumers) have been very vocal about the lack of innovation they've come to expect from the tech giant. The last great redesign of an iphone came with the 2010 release of the iPhone 4. Since then we've seen upgrades to that model in the 4S, 5, and 5C/5S with the most notable additions being faster processors, bigger screens and a fingerprint sensor.
iPhone sales haven't suffered due to this accused lack of innovation, but the excitement of the Beats acquisition could possibly reassure Apple consumers that in the face of innovations of other companies like Samsung and HTC, they haven't used up all the tricks in their bag.
Lastly, what's more exciting than seeing two of your favorite things join forces? The numbers are there, this is a match made in Jay Z and Beyonce heaven with no Solange in sight. In this case Apple being the older, more seasoned and time-tested brand, and Beats being the flashy, newer, well-packaged product that started amongst a great group of peers but has since established itself as its own entity.
Apple and Beats were undoubtedly doing well on their own, but now that they've come together it wouldn't make sense for one to prosper without the other. These are the types of marriages that stand the test of time, and who doesn't love a good happily ever after now and then?
Author Bio
This article is written by Diana Zelikman from Fueled, an award winning mobile app design and development house based in New York and London.
With these types of buys it's easy to speculate how one company, typically the smaller, could fade quietly out of the public eye, left only as a credit in the fine print of the tech specs, if that. But we at Fueled don't see that as being the destiny of Beats in this particular situation, and for quite a few good reasons.
First, the influence of the Beats by Dre brand is undeniable. Despite conflicting reviews and Time Magazine ranking it near the bottom in sound quality of other competitors, as of 2012 Beats was the market leader with 40% of all headphones sales and 70% of premium headphones sales.
It's Beats' phenomenal marketing that has made them increasingly popular with the younger generation. From product placement in a number of videos and live-television events, to celebrity fans such as Lil Wayne and numerous sports professionals, even on to tastemakers like Karen Civil. Beats has established itself as more of a status symbol, or the heavy currency in a bull market of worthy contenders
On the inverse, even with Apple consistently in the top 3 of the World's Most Valuable Brands, outlets like CNN5, BGR6 and CNet7 (as well as Apple consumers) have been very vocal about the lack of innovation they've come to expect from the tech giant. The last great redesign of an iphone came with the 2010 release of the iPhone 4. Since then we've seen upgrades to that model in the 4S, 5, and 5C/5S with the most notable additions being faster processors, bigger screens and a fingerprint sensor.
iPhone sales haven't suffered due to this accused lack of innovation, but the excitement of the Beats acquisition could possibly reassure Apple consumers that in the face of innovations of other companies like Samsung and HTC, they haven't used up all the tricks in their bag.
Lastly, what's more exciting than seeing two of your favorite things join forces? The numbers are there, this is a match made in Jay Z and Beyonce heaven with no Solange in sight. In this case Apple being the older, more seasoned and time-tested brand, and Beats being the flashy, newer, well-packaged product that started amongst a great group of peers but has since established itself as its own entity.
Apple and Beats were undoubtedly doing well on their own, but now that they've come together it wouldn't make sense for one to prosper without the other. These are the types of marriages that stand the test of time, and who doesn't love a good happily ever after now and then?
Author Bio
This article is written by Diana Zelikman from Fueled, an award winning mobile app design and development house based in New York and London.
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