According to the gossip, Apple finally announced a deal to buy the company Beats Electronics with a value of USD 3 billion. Beats Electronics are famous for products Beats headphones aimed at the upscale market.
As part of the acquisition, which consists of Beats founder Jimmy Lovine and Dr. Dre will join the employees of Apple. Beats was founded in 2008 and since then considerable success in the music industry.
So why did Apple buy Beats? Only the execs from the two companies know for sure, but there are a couple of possibilities. Apple could build upon the existing Beats Music streaming service to create an improved version of the service that it calls its own. Meanwhile, the Beats Electronics name could help Apple to gain some style points with consumers, many of which see the “Beats” brand as being cool.
The main reason to buy Apple Beats possibility to strengthen the music streaming service that is popular lately, while sales declined songs on iTunes. Streaming music market in the United States is currently dominated by Pandora and Spotify. Apple is expected to make Beats Music streaming service is becoming popular.
Apple created the digital download business and obtain remarkable progress, but the industry is heading towards a streaming service.
In addition to strengthening the music streaming service, the popularity of Beats headphones can also add to the cool factor if it will be included in Apple gadgets.
UPDATE: Financial Times employees Tim Bradshaw and Matthew Garrahan have shed a bit more light on the Apple-Beats deal. Apple CEO Tim Cook told FT that Beats Music will still be available on Android and Windows Phone after the acquisition closes, saying that “it’s all about the music.”
