Main Image

4 reasons why Apple agreed to acquire Beats Audio for $3 billion

June 2, 2014 by Omar Sohail

With several companies ranging from Logitech, Sennheiser, Bose and many more, the company with highest market cap in the world agreed to purchase Beats Audio for a total of $3 billion USD. The acquisition might come to as a surprise for thousands of individuals, who have concluded Beats’ products as nothing more than overpriced and sub-standard quality of headphones that money can buy. Nonetheless, here are four reasons that excited Apple’s interest to purchase the audio products manufacturing company.

1. Apple filed an earphone sensor patent just yesterday

Apple Filed An Earphone Sensor Patent Just Yesterday

Shortly after the news was confirmed that Apple had acquired Beats Audio for $3 billion, the tech giant immediately filed a patent application for the insertion of sensors in to earphones and headphones. The details of the patent were that users will no longer be required to pause or stop the audio that they are listening to and that all they would be required to do is to remove the earphones and headphones and whatever audio that is currently being played will be stopped or paused. This is quite a convenient approach from Apple, especially for users who are done listening to music, or completed their audio calls made from free calling apps.

2. Beats is giving Apple an advantage in music streaming

Beats Is Giving Apple An Advantage In Music Streaming

In an interview, CEO of Apple, Tim Cook said that one of the reasons for acquiring Beats Audio was that the audio products manufacturing company was giving the tech giant a head start, particularly when it came to a music streaming service. Apple has pointed out that acquiring Beats will give the company an advantage because Apple will no longer have to waste time, effort and resources in constructing its own music streaming service when it can use Beats’ existing music streaming service and upgrade it in to a platform that will provide sufficient amount of convenience for the user. With streaming services such as Spotify already besting Apple’s iTunes streaming service, the acquisition will allow Apple to take the lead once more.

3. Apple wants to reignite its iPod product

Apple Wants To Reignite Its Ipod Product

In 2013, Apple only managed to sell 26.4 million iPods compared to the 35.16 million units the company had sold in 2012. The acquisition of Beats Audio will give the company another product to strike its dominance. Seeing how purchasing an iPhone would negate the use of an iPod altogether, Apple may be looking in to bringing in new features to the iPod that will allow the product to stand out from the smartphones.

4. Apple wants to rake in more profits

Apple Wants To Rake In More Profits

Apple’s global market iOS share has declined. For five consecutive years, Apple dominated the tablet market until 2013, where the total number of Android tablets exceeded 195 million units while the iPad manufacturer had only managed to sell 71.1 million units. Even though the 71.1 million figures is more than what the company had sold the previous year, the reality of cut-throat competition has dawned on Apple. Currently, Apple’s earphone bundle along with its mobile products is not made up of robust quality. With this acquisition, Apple might finally bring about a lasting audio product, and may even stamp a competitive price tag on it.

Lots of people might still not be convinced as to why Apple would make a move on Beats. Contrary to popular belief, Apple saw something valuable in Beats, which is why it presented an acquisition offer to the company.

Have questions or suggestions? We love to hear from you.


Free Calls CTA

comments powered by Disqus

Follow Us