Could This Explain Why Apple Spent More than $3 Billion to Buy Beats Headphones?

When Apple bought Beats from Dr. Dre and Jimmy Iovine for more than $3 billion USD, a lot of people thought that Apple CEO Tim Cook had lost his mind. Was the headphone market really worth that much? Did he realize how few subscribers the Beats streaming music service had?

We now know that Apple took Beats streaming and turned it into Apple Music, much in the same fashion they took a service called SoundJam and turned it into iTunes. And if you’ve been outside lately, you’ll have noticed that the popularity of Beats headphones hasn’t seemed to have waned any. But still, three billion dollars?

Forbes has put forth a new theory related to rumours that Apple is going to kill off the traditional headphone jack–a technology that’s been around since 1878 [sic]–on future iterations of its iOS devices. To plug in headphones, users will have to use the Lightning port.

This will have two effects: (1) All future purchasers of iOS devices will have to buy an adapter to make their existing headphones with their 3.5 mm jack work with their new toy; and (2) Existing Beats users will have to repurchase new Beats ‘phones for their new iPhones. It could be like when the record companies got everyone to buy their record collections again when they introduced the CD.

Interesting. This could turn out to be a genius move–if not something of a dick move for consumers. This is why the $10.3 million Tim Cook earned last year seems to be a bargain compared to how much record label executives got paid. Read the whole story here.

Alan Cross

is an internationally known broadcaster, interviewer, writer, consultant, blogger and speaker. In his 30+ years in the music business, Alan has interviewed the biggest names in rock, from David Bowie and U2 to Pearl Jam and the Foo Fighters. He’s also known as a musicologist and documentarian through programs like The Ongoing History of New Music.

5 thoughts on “Could This Explain Why Apple Spent More than $3 Billion to Buy Beats Headphones?

  • January 7, 2016 at 11:19 am
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    Shady. Pretty much screws anyone who doesn’t like Apple’s offering of headphones. No more quick replacement options.

    Reply
  • January 7, 2016 at 9:14 pm
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    So basically anyone who wants to use a decent to good set of headphones shouldn’t buy Apple phones?

    Reply
  • January 7, 2016 at 10:03 pm
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    Give me Spotify, any Android device and good pair of Bose headphones and I’ll be happy.. I will however throw in a couple of bucks towards Apple stock though.. Thanks for the investment tip Al! 😉

    Reply
  • January 8, 2016 at 12:40 am
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    You sheep I mean iphone lovers will one day realized how apple continously and very unapologetically screw you at every corner. …yet yah keep going back…begging for more Sir…

    Reply
  • January 8, 2016 at 12:04 pm
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    The words “Spotify” and “good pair of Bose headphones” just made some passing audiophile’s head explode.

    Reply

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