Apple Buys Beats: Desperation or Opportunity?

In fact, its last high-profile buy was in 1996, when Apple purchased computer company NeXT and in the process brought previously ousted founder Steve Jobs back to the firm.

Announced last week, the purchase of Beats, which was founded by rapper Dr. Dre and music industry executive Jimmy Iovine, brings into the Apple fold an audio hardware business, including Beats’ popular headphones and the company’s streaming music service.

As Apple’s Worldwide Developers Conference kicked off in San Francisco this week, Knowledge@Wharton spoke to Wharton marketing Professor Peter Fader about how the company can successfully leverage Beats’ strengths and why the acquisition could prove to be a boost for the entire streaming music space.

*[This article was originally published by Knowledge@Wharton.]

Read the whole article here.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.

1 Comment on "Apple Buys Beats: Desperation or Opportunity?"

  1. Apple bought them in an attempt to sure up apple’s struggling music streaming offering. But buying a company known for overly-hyped bad performance hardware is not going to do it. Maybe it will appeal to 14 year olds who like Beats headphones.

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