May 10, 2014
Pundits are saying it makes no sense for Apple to buy Beats because the Beats headphones are expensive and technically inferior compared to the competition. All Beats does is successfully make millions of consumers lust for its product by using extraordinarily clever design and marketing. It’s almost as if the Beats co-founders have some sort of reality distortion field.
Wait, why does that sound familiar?
To my ears, Beats plus Apple sounds like the most perfect match of all time.
Apple can improve the Beats sound quality if it chooses to do so. So that’s not a problem so much as a business choice. And buying Beats is a good way to get into the streaming music business quickly, which had to happen because iTunes is a dinosaur with arthritis. And when you buy Beats you get Jimmy and Dre in the deal, and that team might be worth more than all the other Beats assets combined.
Apple’s biggest problem lately is that it is charisma-challenged, which makes investors distrust their future vision. That just changed. They just bought a shitload of charisma.
No one can predict how the Beats deal will go. Any deal of this scale and complexity can go bad for any number of reasons. But if you have a strong and unwavering opinion that Apple buying Beats is definitely a mistake, you’re either a genius or an idiot who thinks he’s a genius. Good luck sorting that out.
Disclosure: I own Apple stock. I also own several Apple products, half of which are overpriced and inferior compared to the competition. The only reason I don’t own any inferior and overpriced Beats headphones is because for some reason they don’t make it easy to buy an adapter that will work with my Windows computer. Yes, I’ve tried to purchase Beats headphones for irrational reasons and failed. That makes me sort of a double-idiot. But I take pride in being aware of it.
Co-founder of CalendarTree.com
Author of How to Fail…