Apple Beats: What is Tim Cook-ing up at Apple?

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Geek Smack: Apple Beats – How the Audio System can Kick Apple into a New Gear

Monster must be kicking themselves. Apple came in and took away the Beats line for 3.2 billion. This makes Dr. Dre the first hip-hop billionaire – and he deserves it for making a device everyone wants.

People are scratching their heads and even criticizing Apple for getting the headphone giant – saying they don’t need Beats. Yet its more than just a company they bought out.

It was major competition.

This year, Beats launched their own major music service in competition with Apple iTunes. It might be the way Apple will finally break down the walled garden of iTunes – Beats Music being that hammer. iBeats Music might become a cross-platform music system for Apple, Android, and Windows. Not to mention strengthening the AT&T partnership since Beats music already works with the 4G service. Imagine some of your new Android users finally getting to bring over those songs you purchased when you had an iPhone…

But its more than just iTunes and headphones. Its about all things audio.

Lets look at it through the automotive industry. Apple now has a major car audio system that could rival Sony, Karman-Harden, and other in-car speaker manufacturers. This could bring a new competition into the in-computer car business. Maybe even a ViOS – an in-vehicle Apple operating system.

Beats is a top brand – the average headphones cost consumers $100 or more. Celebrities and sports stars already publicly wear the headphones. The exposure alone might be worth the 3.2 billion.

The Verge is hinting the acquisition wasn’t as much for the headphones as for the wearable technology standpoint. They speculate the purchase was for Dr. Dre and Jimmy Iovine to eventually promote the upcoming Apple iWatch.

Still, Beats brings entry into areas that Apple hasn’t been. It definitely takes Apple further down the music rabbit hole. New iPhones could get headphones everyone wants and a cross platform music system that could change the landscape.

If anything, think of it this way: Facebook bought Instagram for the users. While Beats only did about Ten million pair last year that is ten million possible new users to Macbooks, iPhones, Mac Pros, and more.

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