What would Apple gain from Beats by Dre?

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With the acquisition basically confirmed in Tyrese Gibson's amusing Facebook video we look at what this takeover could mean for Apple's business.

If you haven't seen it yet check the video out below it's quite entertaining. It's Tyrese Gibson galavanting around with Dr. Dre at some kind of party/celebration, with what is said in the video we can only assume they're celebrating Beats' sale to Apple. 

Headphones

With any luck Apple's headphone team will start by tearing apart their current EarPods and then put their heads together with Beats' and come up with something of a decent standard.

For years Apple has been throwing in free earphones with every purchase of an iPod or iPhone, this is no exaggeration every generation of Apple earphone has been garbage.

When you buy a brand new iPhone or iPod the first thing you should do is throw the EarPods in the bin, or better put them on Ebay for some other poor soul to agonise over.

EarPods are made for ears yet they do not fit in regular ears, which is counterproductive. They sound pretty poor too which is where Beats might be able to offer some real help, they don't need the huge bass that Beats by Dre headphones have but better noise isolation and general performance improvements would go a long way.

Also don't expect Apple branded Beats headphone anytime soon, or ever for that matter. Apple is certainly not about to rebrand Beats by Dre or any services that they provide.

Beats' brand is very similar to Apple's in that their products are premium, iconic and stylish, people who own them or are seen with them are deemed 'cool'. All of this factors into their high prices.

Apple would probably like to nurture the Beats organisation and continue to help it grow and thus reap the profits. In brand sense you probably look at Beats as a tiny version of Apple.

Services

Apple has dominated the music sales since the launch of iTunes, but lately there's been a slump. Some blame iTunes itself claiming the whole design needs reshaping, but with other services like Spotify and Pandora offering stiff competition at a better price point it's no wonder iTunes is struggling of late.

iTunes Radio also hasn't taken off the way Apple probably would have hoped (restricting it to the US and Australia hasn't helped) and Beats have a promising service called Beats Music.

It is a direct competitor to Spotify as it is a subscription based streaming service with over 20 million songs to choose from. The service uses algorithms and human curation to generate playlists based on artists, moods or events.

Perhaps Apple is looking to scrap iTunes Radio in favour of Beats Music, or maybe they want access to the technology behind it to incorporate with iTunes Radio. Beats Music also has some talented people like Julia Pilat who is leader of the curation team, or Trent Reznor of Nine Inch Nail who is the chief creative officer.

The news will continue to prompt head scratching until either company comes out and says just what is going on and why. There are many reasons why this takeover seem odd: it's an unusually large acquisition for Apple, iTunes and Beats Music are competitors and Apple's brand name and overall technology is light years ahead of Beats'.