Beats by Dre: What does Apple stand to gain?

On May 28, 2014, Apple Inc (Apple) announced that it was acquiring Beats Music and Beats Electronics (collectively 'Beats') for a total of $3bn, its most valuable acquisition to date. This case study assesses the Beats business, as well as the motivation for the high-profile deal, which was completed on August 1, 2014.

Scope

  • Analyzes Beats' historical product and marketing strategy.
  • Examines synergies between Apple and Beats' businesses, assessing the reasons behind the acquisition.

Reasons to buy

How has Beats fostered its strong brand image over the past few years?

Which markets has Beats targeted, and how do they compare to Apple's recent movements?

What are the key aspects of Beats' business that drove Apple's decision to make its biggest acquisition to date?

How will the acquisition serve to boost Apple's future business?

Companies mentioned

None

None

Table of Contents

OVERVIEW

Catalyst

Summary

BEATS BRAND IMAGE

Beats has a strong presence in the music industry

Beats and 'the intersection of sports and music'

Beats: the ...

OVERVIEW

Catalyst

Summary

BEATS BRAND IMAGE

Beats has a strong presence in the music industry

Beats and 'the intersection of sports and music'

Beats: the fashion statement

BEATS: A PREMIUM AUDIO BRAND?

Tech partnerships have defined the Beats range

Beats has expanded beyond headphones

Premium price, sub-par sound?

BEATS MUSIC: THE STREAMING SERVICE

Subscription streaming key to growth and revenue protection

Apple offers no on-demand subscription streaming service, Beats does

Beats Music has significant mainstream potential for Apple

CONCLUSIONS

Beats is a good fit for Apple, but Beats Music may be key

APPENDIX

Sources

Further Reading

Ask the analyst

About MarketLine

Disclaimer

List of Tables

NA

NA

List of Figures

NA

NA

    Pricing

Discounts available for multiple report purchases.

reportstore@marketline.com
+44 (0) 161 359 5817

Saved reports