Apple Confirms Purchase of Beats For $3 Billion 188
SimonTheSoundMan writes: "Apple has confirmed it will buy Beats Electronics and Beats Music for $3 billion. Apple will make the purchase using $2.6 billion in cash and $400 million in stock. An important part of the acquisition for Apple is absorbing the Beats subscription streaming service, even though it only has about 110k users. The Beats brand will remain intact, and will continue to sell headphones. "
I dislike Beats... (Score:5, Funny)
...but I appreciate what their marketing team has done for the rest of the headphone industry...
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What do you mean?
Note: I have Senns HD 380 Pro and the old Sony MDR 7506's
Re:I dislike Beats... (Score:5, Interesting)
I think he means they make any other headphones look like high quality bargains by comparison.
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In particular, they have made over ear headphones popular. Which is great as those in ear things make my ears hurt. I wouldn't buy Beats but do have some nice earphones and don't mind wearing them in public.
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And over ear headphones not being popular somehow deterred you from buying them until Beats made them popular?
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> they have made over ear headphones popular.
The technical term is Circumaural
Reference:
* Headphone Types [wikipedia.org]
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Seriously they aren't that bad.....but then they aren't worth what they cost either. Kind of like most products that are overpriced like all these chinese made shoes with Nike and other high cost brands on them that cost about 30 times what the actual cost of producing them is. Everything is that way. Overpriced cars, motorcycles, clothes, etc. Brand names sell. Who knows this better than Apple? They claim a premium on hardware that is certainly overpriced compared to most peecees even if they do have
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I think he means that beats made "high quality headphones"* sexy. Which in turn made the average Joe consumer actually care about the quality of their audio gear. Which helps nerds like you and me get better priced audio gear because big companies see the value of investing in the production of high quality audio gear.
*I use the term "high quality headphones" loosely because beats aren't great but they are much better than what most people were using before.
Re:I dislike Beats... (Score:4, Interesting)
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Then again, so are other earphones with smaller price tags.
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There are many types of music that go thump. Most people do not want to listen to opera or symphony (those should not be capitalized by the way; it only serves to make you look even more self-congratulatory and condescending). No one wants balanced headphones but studio engineers.
There are better "quality" headphones in the price range of Beats but style is important to a lot of people (although I think they're pretty ugly). Let's cut the "I am superior because I buy a different brand than you" nonsense.
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It wasn't tangential. Beats are optimized for listening to a different type of music. Their name is even derived from it. You used it as am opportunity to let everyone know that you listen to Opera and Symphony. I know it's common on Slashdot for people to try to validate their sense of superiority based on brands they buy / music they listen to / how they shave their face but that doesn't make it any more valid.
It's just false that their "frequency response is worse than you can find in most earbuds". I do
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Why would I be butthurt that a brand I didn't like was technically inferior? Given that you can't even make a logically consistent sentence I am pretty sure your other points are moot (see- both can play at that game)
Fun fact: "music that goes thump" as you put it does not feature a lot of violins, violas or cellos to tell apart. A balanced set of headphones are technically superior to an unbalanced set if perfect sound reproduction is your metric. Few people use that as a metric (audiophiles definitely inc
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Given that the job of headphones is to reproduce the soundwaves indicated by an audio source, I'm pretty sure that is the only metric that matters. Or, tell me, why should we pay hundreds of dollars for equipment that can't reproduce sound properly?
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> No one wants balanced headphones but studio engineers.
I should call "Bullshit", but instead I'll say:
[Citation needed]
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I should have used the more technical "flat-response" to be more clear with my meaning but here is a citation from Audio Technica [audio-technica.com]. They clearly recommend choosing a pair of headphones based on what sounds best with the music you listen to. There is no "best" headphone; flat-response is not universally desired.
It is a lot like computer monitors. A graphic artist needs a monitor that faithfully represents colours. Most general users think a glossy laptop screen looks "better". A lot of people like the sound
Re:quality of their audio gear (Score:2)
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Gotcha.
Gotta agree with that. :-)
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Have you seen the Denon line post-AHD2000? I attribute that abomination entirely to the "Us too! Let's be Beats!!!" syndrome.
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It is a supply/demand thing. If you need high quality cans for audio production you will likely be paying a lot simply because there are far fewer people buying those than cheaper "makes sound" headphones.
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Grados sound nice in quiet rooms, particularly if paired with a half decent headphone amplifier. Connected to an ipad, outside, with the wind and the traffic? Not so much.
If sealed headphones that sound as good can be had, I'm all ears.
good closed headphones can be found (Score:2)
www.head-fi.org
Not as good as open in general, but not bad at all.
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Style over substance (Score:5, Insightful)
I think it's safe to assume Apple wanted the Beats brand and styling, since the technology is nothing special. Beats headphones sound shit compared to much cheaper competitors, so apparently the logo is worth billions.
We seem to be in another bubble, where brand popularity is valued way too high.
Re:Style over substance (Score:5, Interesting)
so apparently the logo is worth billions
Well, isn't that the case with just about everything? Branding & perception. Ask your average purchaser what they think of Beats headphones and most of them will tell you they sound amazing and are totally worth the price. It's like Coke vs. Safeway Select cola. They taste exactly the same (not all brands taste the same, but in that particular case they do), but the store brand is 1/4 the price. Yet plenty of people still buy Coke when the store brand version is sitting in the same aisle. Now think of brand names in just about anything. What makes Beats any different? Do you seriously think quality matters more than branding perception to most consumers?
And you're ignoring this part:
An important part of the acquisition for Apple is absorbing the Beats subscription streaming service
Not just the service, but more likely the licensing agreements.
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Seriously has Apple ever done anything that puts branding and perception over Reality? Distortion of this kind is pretty much a Field that they invented.
(or they were getting flack over not having any minority execs, and with this deal Dr. Dre is now a VP @ Apple right?)
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It's like Coke vs. Safeway Select cola. They taste exactly the same (not all brands taste the same, but in that particular case they do)...
If you think the favor of Coke isn't unique and clearly distinguishable versus knockoffs, you don't have a particularly good palate.
I don't profess to have a great palate, but being a Coke drinker, I can even pick out Dasani from among other bottled waters because of the salts they put back in. [Most of the big water bottlers RO their water, and then put back in a distinct set of minerals. You can easily develop a taste for Dasani over Aquafina or the other way around...]
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Serious Coke drinkers can even tell what type of container the soda was stored in. Larger containers are carbonated more heavily so they can survive being opened more times, and that makes them taste differently.
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unless they are blinded, and then that ability magically goes away.
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unless they are blinded, and then that ability magically goes away.
Properly conducted double blind ABX tests are incredible insights into how perceptions influence our experiences. People who are just absolutely no questions about it convinced they have no problem whatsoever tasting or hearing a difference shockingly often lose that ability when they really don't know what they are tasting/listening to.
Re:Style over substance (Score:5, Informative)
Sure. There's no questioning that, say, fountain Coke varies from location to location - McDonald's uses RO water, generally the same equipment, and a Coke there tastes different (and to me, better) than a fountain Coke at Burger King -- which purifies its water, but not RO. Also, apparently, a larger quantity of the water is kept chilled in their RO system (keeping it colder, allowing for better CO2 absorption).
[A quick "McDonalds reverse osmosis" search shows a few articles that all say the same thing.]
You can generally get a good Coke at your local Water and Ice store for similar reasons.
Anyone living near Mexico can also tell the difference between a glass bottled Mexican Coke and the US version because of the sugar used.
http://en.wikipedia.org/wiki/M... [wikipedia.org]
It used to be a treat at "real' Mexican restaurants here in the Southwest, but now they're available at Costco.
[I personally avoid most sugared drinks, but indulge in the occasional "MexiCoke."]
Regardless, Safeway Select Cola is in no way "exactly the same" as Coke :)
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I have, and never will, understand the Coke-phenomenon.
To me all colas are "too strong", they kill the taste food - so they cannot be drank with food. But still people do. For thirst - no, again, too much sugar or other sweeteners, it does not take the thirst away. But still people do.
By far the best drink is tap water, for thirst and with most foods (unless you fancy a nice beer or wine, but that is different story entirely).
Apparently there are even cola-connoisseur like you (not that there's anything wro
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Uh, not in London - it has a noticeable chemical taste, compared to tap water in e.g. Yorkshire. And let's not even think about the tap water in Iceland, which smells of eggs.
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I have, and never will, understand the Coke-phenomenon.
To me all colas are "too strong", they kill the taste food
Try coca-cola with sushi. Mind, blown. Each brings out the flavor of the other.
Don't get me wrong, I occasionally do drink a soft drink, but that is mostly to get some sugar into blood stream.
Yay, sugar crash with a caffeine crash.
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different
Re:salts they put back in (Score:2)
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Coke and Safeway Select DO taste the same though.
While Safeway's generics are pretty good, they're still not the real thing to any soda snob.
I think their Zero product is the closest - for whatever that's worth.
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It has to do with Apple owning the culture of "cool" in the USA.
Just ask yourself, would a teenager rather have a closet full of trendy clothes or an gold iPhone 5?
Yes, the gold iPhone 5 wins everytime....
Apple gets Dr. Dre out of this deal, thus Dr. Dre will now be an Apple employee/aquihire.
Apple needs to transition from selling tracks on iTunes to getting people to pay for streaming without destroying the music business. Dr. Dre is the man for the job.
Apple has watched the decline of facebook as the you
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I think it has more to do with Beats Music and Iovine being a god among Hollywood insiders.
Beats headphones probably means the pack in earbuds change at some level.
Re:Style over substance (Score:4, Informative)
I hadn't heard of Beats until last week. I was in a Future Shop (like Best Buy) with my son and he was all gaga over some of these Beats headphones on display... So I put them on and listened. It was like I was listening to music through a tin can while someone tapped on the can with a pencil... I'm far from a 'golden ear' audiophile wanker... I have a pair of mid-low end Sennheisers on my head 8 hours a day at work...
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They also brand android software drivers for cell phone and tablet speakerphones.
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I don't know about that. Beats has something like 2/3rds of the headphone industry selling $50 headphones for $200. Beats probably does about $1b in 2014 in sales. I'm hard pressed to see how that brand isn't easily worth $2b and for a control investor a like Apple who could leverage beats to also sell phones... I don't see the bubble.
I'll agree the technology is worth $0.
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I think it's safe to assume Apple wanted the Beats brand and styling, since the technology is nothing special. Beats headphones sound shit compared to much cheaper competitors, so apparently the logo is worth billions.
You see Beats sells headphones with cheap hardware worth about $50 for around $300.
Apple sells phones with cheap hardware worth about $100 for $600.
Both utilise brand over performance, style over substance and both like to give their customers a good rodgering at every opportunity. It's a marriage made in corporate heaven.
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The $649 iPhone 5S costs Apple about $199 to build [ihs.com]. And of course, that doesn't account for things like the cost of developing the software, or operating the servers that supply service to these devices.
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Then again, they can't possibly sound worse than say, the standard Apple earbuds that Apple provides.
Granted, the Apple ones are "free", but you can also buy them separately, and are universally considered to be shit.
As for Beats, well, I know a few people who like them. Apparently they sound like shit except for specific music types. Overcompressed popular beat heavy music apparently sounds decent. Of
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The rumor seems to be (and this makes sense to me) that Beats was purchased for their licensing deals and personnel more than for their headphones.
Apple pretty much says this in the press release - which is the first link in the summary.
Beats? BEATS? (Score:3, Interesting)
Why don't they just buy iHome while they're at it? Then they'll control 90% of the iCrap market.
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Beats takes analog audio hardware that hasn't changed since the 70s, sprinkles fairy design dust on it, and sells it for big money. What better model for Apple's transistor & software business?
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Beats takes analog audio hardware that hasn't changed since the 70s
If a pair of headphones incorporates neodymium magnets, it was designed after the 1970s. As for analog? Most passive headphones are analog.
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Beats takes analog audio hardware that hasn't changed since the 70s, sprinkles fairy design dust on it, and sells it for big money. What better model for Apple's transistor & software business?
I was going to object to your outright dismissal of design and how important it is to good (or sometimes just popular) products. But then I remembered that this is slashdot.
Hint: The failure of Linux to make inroads on the desktop is due to the exact same reason: the elevation of engineering above everything else.
(And yes, I too am an engineer).
Beats Streaming Service has 110K Users? (Score:2)
I wonder how many iTunes Radio has.
After all, according to Apple fans, "iTunes has 800 million credit cards!" You'd think they'd manage more than 0.01% of their users...
I gotta admit--I don't get this one. Streaming service? Apple has iTunes Radio. Headphones? Okay, but they're not folding it into Apple. As someone mentioned, Jimmy Iovine [wikipedia.org]? I would think they could get him cheaper than 3 billion.
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They're making money hand-over-fist (I assume?) selling shitty headphones at silly prices, why should it mean anything more than that to Apple?
Re:Beats Streaming Service has 110K Users? (Score:5, Interesting)
Actually, a co-worker brought up a good point.
Apple had to go begging and pleading to the music labels to get permission to stream music and they probably got reamed. Supposedly, Beats Music has a kick-ass licensing deal with the labels--better than Spotify and Pandora. So now that's Apple's deal.
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Besides. $3Billion is cupboard change to Apple. I'm betting they make $10Billion off of it in 2 years.
Most of Apple's money is from hardware. $3G is many months gross revenue from iTunes.
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This is likely for the streaming agreements, so they can bolster their offerings on iTunes Radio. I doubt it has much to do with the headphones (hence why they're leaving that part of the business alone).
Apple has now jumped the shark (Score:3, Informative)
what exactly does Beats have that Apple can't come up with by itself in an afternoon? Hell they could get Eminem or some other rapper to endorse it for a lot less money.
I used to be an Apple faithful but I think their days of innovation are past. Even Samsung is still trying to make its own shit like the VR goggles rather than just buy whatever seems popular.
Re:Apple has now jumped the shark (Score:5, Funny)
Hype.
Apple used to be good at making it.
Then Jobs died.
Now they have to buy it.
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1. beats is a decent popular brand
2. 100k streaming subscribers in one go
3. two highly capable execs to handle day to day dealings with music industry
4. eddie the stuff cue gets to go back to figuring out the cloud
5. beats makes healthy profit, nothing to sneeze at
looks like a very well calculated tactical move
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Re:Apple has now jumped the shark (Score:5, Interesting)
Wow. A 15-year climb from bankruptcy to the most valuable company in the world and people still look at every single move Apple makes and say "wow, that's fucking dumb." Isn't it just remotely possible that Tim Cook knows what the fuck he's doing, and that there's a good reason for buying Beats? How 'bout we give it a few weeks, huh? Maybe, just maybe, the guy running Apple knows something you don't, and perhaps we should give him the benefit of the doubt just this once and see how this plays out before passing judgement?
Sorry, I must be new here.
Besides: every move Apple makes doesn't have to be some earth-shaking road to an innovation unseen since the last amazing thing they did (which everyone shit all over at the time anyway.) If Apple buys Beats or Pepsi or Whirlpool or Nabisco or whoever for $3 billion and they make more than $3 billion off of that in the near future, then it was a good investment, right? Do you know what would make Beats worth $3 billion today? IF IT EARNS $5 BILLION IN THE NEXT FIVE YEARS. And oh, look, that's probably what will happen. [fastcompany.com] (And note that Tim Cook probably has better financial info available than a year-old Fast Company article.) Maybe Tim looked at Dre's books and decided that with Apple's awesome buying power and manufacturing prowess that they could DOUBLE the profit of Beats OVERNIGHT. They might earn that money back by next Christmas.
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The climb up was under Jobs' leadership. Cook's turn at the helm seems to be the slide back down again. It's slow, but it's happening. The magic is gone, and the products are no longer technically superior to the competition.
It's already been long enough to see that. They ditched Jobs' "one true tablet size" pretty quickly. The iPhone 5/5s were both extremely "meh" and a year or two behind the competition. iOS 7 seems to have borrowed heavily from the flat look of Android and Windows, but still lacks basic
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It becomes expensive throwing shit at the wall to see what sticks.
At last Dre has enough money to go back to school (Score:5, Funny)
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Why not, the fucker's a billionaire
Everybody is bothered because their lame idea didn't win the internet lottery.
Oh yeah, and Dre can go get his doctorate, NOT!
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Buying a streaming contract? (Score:5, Insightful)
Buying a streaming contract? (Score:2)
Remember, Apple bought Soundjam and released iTunes something like 6 months later.
Buying something that already exists is much faster than rolling your own, even if you COULD roll your own. It's probably worth Apple's time not just for licencing reasons but for software reasons as well.
I'm predicting that iTunes will be phased out over the next couple of years in favour of the Beats software. Everyone agrees at this point that iTunes has sort of run its course, and this will give Apple something to transiti
Only in America (Score:5, Interesting)
The DJ responsible for "Fuck Tha Police" just made a billion dollars. I love it.
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The DJ responsible for "Fuck Tha Police" just made a billion dollars. I love it.
Now he can write a song called "Fuck Tha [Apple] Shareholders"...
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Pedantic rap fan-
That song was actually written by Ice Cube when he was 15. Dr. Dre produced it, and played the role of the judge. He doesn't rap (he didn't really rap at all until Ice Cube quit the group) but he gets to say the great line "The jury has found you guilty of being a redneck, white bread, chickenshit motherfucker".
A couple weeks ago Snoop Dogg quoted that line in reference to Donald Sterling.
WWDC (Score:2)
Price for new product?? (Score:2)
"The Beats brand will remain intact"... (Score:2)
"The Beats brand will remain intact," says the headline. But will the Apple brand remain intact? This is one of the most confidence-shaking moves we've seen since Jobs died. Isn't quality central to Apple's value proposition? Doesn't Beats have a poor quality reputation? Doesn't everybody know that Dre prefers Koss Portapros?
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Isn't quality central to Apple's value proposition?
No, and it hasn't been since the birth of the Performa line.
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Performa!!!??? You really don't think they've recovered their brand since Performa ended? That was 14 years ago when Performa ENDED. I'm talking about Apple devaluing the brand they have right now.
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Isn't quality central to Apple's value proposition?
No, and it hasn't been since the birth of the Performa line.
Performa!!!??? You really don't think they've recovered their brand since Performa ended?
Is your problem with reading comprehension, or with basic logic? That is nothing like what I said.
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Isn't quality central to Apple's value proposition?
No, and it hasn't been since the birth of the Performa line.
Performa!!!??? You really don't think they've recovered their brand since Performa ended?
Is your problem with reading comprehension, or with basic logic? That is nothing like what I said.
Does phrasing an insult as a question while demonstrating your own problems with reading comprehension and logic amuse you, or me?
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Does phrasing an insult as a question while demonstrating your own problems with reading comprehension and logic amuse you, or me?
I wouldn't know, because only the first part of that has happened. Why don't you let me know, using the rudimentary grunts you favor if necessary, which word you didn't understand.
um, what? (Score:2)
At first I thought, good plan, because Apple doesn't seem to be able to make decent sound devices on their own. The trendy white earbuds may be, you know, trendy, but they sound like carp. But then I read that the Beats headphones (which I had never heard of) are carp also.
Has anyone done a hearing test on the Apple board of directors recently? Just askin'.
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It's like pr0n. A word with an obvious meaning spelled to get past censors. Doesn't appear to be an issue here, but I got in the habit of spelling it that way awhile back.
Ugh (Score:2)
I thought ... (Score:2)
Never mind.
Only 110K people who have figured out how to... (Score:5, Informative)
...sign up.
I tried to sign up for the streaming service today. I pressed the prominent "free trial" button, read the terms of service and privacy policy, and filled out the web form, only to be told "username not reserved." WTF does that mean? Temporary trouble? Hit the sign up button again...username not reserved. Picked a different user name. "Email not reserved."
So, I read some of their support forum, where other people are asking, "wtf is username not reserved", and found you had to sign up through their mobile app before you can sign up for the free trial on their website.
I checked again and found no instructions to that effect.
Maybe there are only 110K people who have figured out how to sign up.
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Another silly purchase. (Score:2)
According to the wiki entry, they had a valuation of $1B in September 2013.
http://en.wikipedia.org/wiki/B... [wikipedia.org]
I guess Apple can afford to throw money around.
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As others have mentioned: it's not the users, it's not the shitty headphones -- Apple wants the licensing deals that Beats already has.
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Then they need to spin off the shit headphone business. I doubt they will considering Cook is getting his picture taken with Dr. Dre.
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Yeah someone at apple was smoking some fine chronic, that's fo sho.
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They already did. Beats was only used with the HTC M7. Now, they call the exact same thing "Boomsound". If you use Sprint in the USA, you can also get the HTC One M8/Harmon Kardon Edition [androidauthority.com], which is actually an improvement over the software that works with the standard M8's boomsound (though I am not sure the hardware changes at all). It also gains the ability to play FLAC files, which Beats didn't give, a free Spotify account for 6 months for "Framily [sic] plan" users, and a nice set of earphones. B
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Even audio-freq headphones and line-level cables use shielded cable.
Its only for speakers where wire does not matter - so long as the impedance is low compared to the speaker, hence the coat-hanger theoretical example.
Of course the comparison in only in sound quality. There are mechanical disadvantages.
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I wonder if the deal includes Iovine's soul
You can't include something that is a fiction...
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Go submit it on SoylentNews if you think Slashdot is censoring things.