Apple finally confirms it's buying Beats for $3B
Apple on Wednesday confirmed it's buying Beats for $3 billion, giving the electronics giant a popular headphones business and subscription streaming music service. The acquisition -- Apple's biggest ever -- includes $2.6 billion up front and $400 million that will vest over time. Early reports said Apple was planning to buy Beats for $3.2 billion, but recent speculation said the price had dropped. The company said Beats co-founders Jimmy Iovine and Dr. Dre, whom it called "sound pioneers," will join Apple. Apple will continue to use the Beats brand."Music is such an important part of all of our lives and holds a special place within our hearts at Apple," Apple CEO Tim Cook said in a statement. "That's why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world."He also told The Wall Street Journal that Iovine and Dr. Dre "have a rare talent," a sentiment he also echoed in a memo to employees. "We love the subscription service that they built," Cook told the WSJ. "We think it's the first one that really got it right."See alsoWhy does Apple want Beats? No one really seems to knowIs Apple's Beats buy just a remix of HTC's earlier mistake?'First billionaire in hip-hop' Dre boasts of Apple-Beats deal on FacebookApple said to be in talks to buy Beats Electronics for $3.2BIovine, meanwhile, said he always believed Beats "belonged with Apple.""The idea when we started the company was inspired by Apple's unmatched ability to marry culture and technology," Iovine said in a press release. "Apple's deep commitment to music fans, artists, songwriters and the music industry is something special." News of the deal broke earlier this month. At the time, it was unclear just why Apple would want to make the biggest acquisition in its 38-year-history. Yes, Beats sells a lot of headphones, but Apple, which already sells its own branded in-ear headphones as part of a line of accessories for the iPhone and iPad, could make similar headphones of its own. As for a curated streaming music service such as the one offered by Beats, that's also something Apple could probably create on its own. Eddy Cue, Apple senior vice president of Internet software and services, said Beats will make Apple's music lineup "even better," with the company now able to offer a subscription service along with the free iTunes Radio and song purchases. Cook, meanwhile, told Recode that Apple can build "about anything you could dream of," but Beats gives the company "a head start.""It's not what Apple and Beats are doing today," Cook said. "It's what we believe pairing the two together can produce for the future."He added that Beats should add to earnings in fiscal 2015, which starts at the end of September. Apple also noted that Beats has "become the brand of choice in the music and sports worlds" and "has quickly become part of pop culture in the US." The company plans to expand Beats to more countries through the Apple online store, Apple's retail stores, and select Apple authorized resellers.The company expects the deal to close the fiscal fourth quarter, which ends in September.Apple CEO Tim Cook tweeted a photo of himself with iTunes chief Eddy Cue and Beats cofounders Jimmy Iovine and Dr. Dre.Screenshot by Shara Tibken/CNETApple has followed a predictable script for the past four decades, shunning big, well-known companies and instead buying small players with talent or core technology -- such as the Siri voice recognition technology -- to supplement its current products or help it offer something new.Most of those acquisitions have been so small Apple wasn't even required to disclose them. Before Beats, Apple's largest public acquisition on record was the $429 million it paid in 1996 for Steve Jobs' software maker Next. Cook and his team have bought 27 companies between its fiscal 2013 and this year. Beats is the biggest deal so far.Analysts and investors on Wednesday continued to question the rationale behind the deal, despite efforts by Apple to share its thoughts with the press. "While we believe Apple should get some benefit of the doubt because of its historical success, a music-related acquisition still seems, to us, more defensive," Wells Fargo analyst Maynard Um noted. "Given the changing landscape and our view that Apple will have to eventually evolve its business model ... we believe Apple should be acquiring more offensive assets to better position itself."Meanwhile, at least one Beats partner has to figure out its future relationship with the headphone designer. Hewlett-Packard, which directly competes with Apple in the competitive laptop and desktop computer market, has included Beats Audio technology and Beats branding in nearly all of its mainstream and high-end PCs over the past few years. Currently, about 15 percent to 20 percent of HP's devices use Beats technology. The company maintains the rights, through the end of 2014, to offer new technologies that include Beats Audio, and it plans to release "an aggressive lineup" throughout the year that features the technology. In addition, HP's rights to distribute products with Beats Audio extends through 2015. "HP will continue to develop and offer leading products that include premium technology experiences, including the richest and most dynamic sound experience," the company said in a statement. Updated at 1:50, 2:30, 3:15, and 3:50 p.m. PT with additional details, information about HP's relationship with Beats, and an analyst comment.Beats by Dre Studio (Black)See full gallery1 - 4 / 7NextPrev
iPod Touch vs. iPod Nano- Apple's 2012 iPods compared
iPod Touch vs. iPod Nano: Apple's 2012 iPods compared
Like clockwork, Apple never fails to refresh its iPod lineup every fall. In recent years, though, one can't help but notice that the ritualized iPod unveiling has lost some of its gusto compared with the fanfare surrounding the iPhone and iPad.Still, Apple remains the top manufacturer of portable media players. Those of us old enough to remember the "iPod wars" that occurred nearly a decade ago can attest to the fact that Apple's tenacity in making the world's most popular MP3 player laid the groundwork for the success of the iPhone (pour one out for the Zune, friends). Apple may have moved on to bigger, better products, but maintaining its dominance in the diminishing world of MP3 players is just good housekeeping.And so, the 2012 Apple iPod lineup offers a mix of new and old. The most notable additions are the fifth-gen iPod Touch with its larger screen, and the iPhone-ified version of the iPod Nano. Both devices (for better or worse) make use of Apple's new Lightning connection in place of the 30-pin dock connection that's been around for years.Wondering which of the 2012 iPods is right for you? Here's the quick breakdown.CNETApple iPod Touch (fifth generation)Apple's newest iPod Touch follows the iPhone's lead with a wider 4-inch screen and a Lightning port that replaces the 30-pin connection on the bottom. The camera has been improved, and Apple's Siri voice assistant now comes included. This is also the first time the iPod Touch comes in multiple colors: black, silver, pink, green, red, and blue. Pricing is $299 for a 32GB model, or $399 for 64GB.Read the CNET Editors' Take on the Apple iPod Touch.Josh Miller/CNETApple iPod Touch (fourth generation)Apple is keeping the 2011 iPod Touch model around as an entry-level option. The screen measures 3.5 inches diagonally. Pricing starts at $199 for the 16GB model, or $249 for the 32GB version. The available colors are black or white. This iPod still uses the 30-pin dock standard and will work with older accessories.Read the full review of the Apple iPod Touch (fourth generation).CNETApple iPod NanoApple's iPod Nano has taken many forms over the years, but this year's design is a whole new twist on the Nano concept. The iPod Nano is priced at $149 for 16GB and uses a 2.5-inch touch screen and a home button borrowed from the iPod Touch design. Unlike the iPod Touch, it does not run the same iOS software shared by the iPhone and cannot be used with third-party apps downloaded from the iTunes App Store. Features include music and video playback, FM radio, pedometer, Nike+, and a photo viewer. For the first time in the iPod Nano's history Apple has includedBluetooth audio, which can support wireless headphones and speakers. The iPod Nano has a Lightning port.Read the CNET Editors' Take on the Apple iPod Nano.2012 iPod Shuffle lineupAppleApple iPod ShuffleAside from a wider selection of colors, the Apple iPod Shuffle is essentially unchanged from last year. The price is $49 for a 2GB player. Like the iPod Nano, it's available in black, silver, purple, blue, green, yellow, pink, and red.Read the full review of the Apple iPod Shuffle.AppleApple iPod ClassicThe elder statesman of the group, the iPod Classic, stays true to its name. Just like last year, you get a whopping 160GB of storage for $249. Color choices are silver or black, and the 30-pin dock connector on the bottom maintains compatibility with older dock accessories and cables.Read the full review of the Apple iPod Classic.
Like clockwork, Apple never fails to refresh its iPod lineup every fall. In recent years, though, one can't help but notice that the ritualized iPod unveiling has lost some of its gusto compared with the fanfare surrounding the iPhone and iPad.Still, Apple remains the top manufacturer of portable media players. Those of us old enough to remember the "iPod wars" that occurred nearly a decade ago can attest to the fact that Apple's tenacity in making the world's most popular MP3 player laid the groundwork for the success of the iPhone (pour one out for the Zune, friends). Apple may have moved on to bigger, better products, but maintaining its dominance in the diminishing world of MP3 players is just good housekeeping.And so, the 2012 Apple iPod lineup offers a mix of new and old. The most notable additions are the fifth-gen iPod Touch with its larger screen, and the iPhone-ified version of the iPod Nano. Both devices (for better or worse) make use of Apple's new Lightning connection in place of the 30-pin dock connection that's been around for years.Wondering which of the 2012 iPods is right for you? Here's the quick breakdown.CNETApple iPod Touch (fifth generation)Apple's newest iPod Touch follows the iPhone's lead with a wider 4-inch screen and a Lightning port that replaces the 30-pin connection on the bottom. The camera has been improved, and Apple's Siri voice assistant now comes included. This is also the first time the iPod Touch comes in multiple colors: black, silver, pink, green, red, and blue. Pricing is $299 for a 32GB model, or $399 for 64GB.Read the CNET Editors' Take on the Apple iPod Touch.Josh Miller/CNETApple iPod Touch (fourth generation)Apple is keeping the 2011 iPod Touch model around as an entry-level option. The screen measures 3.5 inches diagonally. Pricing starts at $199 for the 16GB model, or $249 for the 32GB version. The available colors are black or white. This iPod still uses the 30-pin dock standard and will work with older accessories.Read the full review of the Apple iPod Touch (fourth generation).CNETApple iPod NanoApple's iPod Nano has taken many forms over the years, but this year's design is a whole new twist on the Nano concept. The iPod Nano is priced at $149 for 16GB and uses a 2.5-inch touch screen and a home button borrowed from the iPod Touch design. Unlike the iPod Touch, it does not run the same iOS software shared by the iPhone and cannot be used with third-party apps downloaded from the iTunes App Store. Features include music and video playback, FM radio, pedometer, Nike+, and a photo viewer. For the first time in the iPod Nano's history Apple has includedBluetooth audio, which can support wireless headphones and speakers. The iPod Nano has a Lightning port.Read the CNET Editors' Take on the Apple iPod Nano.2012 iPod Shuffle lineupAppleApple iPod ShuffleAside from a wider selection of colors, the Apple iPod Shuffle is essentially unchanged from last year. The price is $49 for a 2GB player. Like the iPod Nano, it's available in black, silver, purple, blue, green, yellow, pink, and red.Read the full review of the Apple iPod Shuffle.AppleApple iPod ClassicThe elder statesman of the group, the iPod Classic, stays true to its name. Just like last year, you get a whopping 160GB of storage for $249. Color choices are silver or black, and the 30-pin dock connector on the bottom maintains compatibility with older dock accessories and cables.Read the full review of the Apple iPod Classic.
Apple stock bumps higher to crown iPhone 6, smartwatch unveilings
Apple stock bumps higher to crown iPhone 6, smartwatch unveilings
Shares ended up closing the day down less than a percentage point at $97.99. Apple, which nearly declared bankruptcy before Steve Jobs returned to the helm in 1997, now is the most valuable company in the US. Its market capitalization of more than $590 billion tops Exxon Mobil, Microsoft, and IBM, all giants in their own right. In Apple's last fiscal year, ended September 28, 2013, the company generated $170.91 billion in sales and $37.04 billion in profits.Apple shares have been hitting records for the past few weeks, most recently setting an all-time high of $103.74 on September 2. But shares dropped more than 4 percent the following day as worries rose about the security of Apple's devices and after rival Samsung introduced its newest phablets, the Note 4 and Note Edge.Apple shares had slid from their earlier high in 2012 on worries that Apple CEO Tim Cook wouldn't be as successful as co-founder Steve Job at developing new blockbuster devices. Cook has promised several times over the past year that Apple would enter "exciting new product categories" in 2014. And in May, Eddy Cue, head of iTunes and the man behind Apple's $3 billion acquisition of headphone and streaming service Beats, upped the pressure by boasting that the consumer electronics giant is working on its "best product pipeline in 25 years."Apple Watch keeps up with the times (pic...See full gallery1 - 4 / 15NextPrevAlong with boasting about new devices, Apple also has taken steps to return more cash to shareholders. The company in April said it planned to give investors six additional shares of stock for every Apple share they owned as of June 2. Because of the split, shares now trade at a much lower level than in the past, but it also makes the stock more accessible to investors. It's much cheaper to own a chunk of Apple at about $100 versus $600. The split went into effect in June, with shares trading at about $93.The Apple iPhone 6 and iPhone 6 Plus have...See full gallery1 - 4 / 22NextPrevThe stock split came as part of Apple's effort to meet the demands of current shareholders, as well as attract a new group of investors. Under the leadership of Cook, Apple started returning some of its massive cash hoard to investors. Shareholders, such as activist Carl Icahn, asked for even more, and Apple earlier this year revealed a big increase to its dividend and share repurchase program, along with the stock split. The company at that time boosted the amount of cash that it's returning to shareholders by about $30 billion to more than $130 billion.
Shares ended up closing the day down less than a percentage point at $97.99. Apple, which nearly declared bankruptcy before Steve Jobs returned to the helm in 1997, now is the most valuable company in the US. Its market capitalization of more than $590 billion tops Exxon Mobil, Microsoft, and IBM, all giants in their own right. In Apple's last fiscal year, ended September 28, 2013, the company generated $170.91 billion in sales and $37.04 billion in profits.Apple shares have been hitting records for the past few weeks, most recently setting an all-time high of $103.74 on September 2. But shares dropped more than 4 percent the following day as worries rose about the security of Apple's devices and after rival Samsung introduced its newest phablets, the Note 4 and Note Edge.Apple shares had slid from their earlier high in 2012 on worries that Apple CEO Tim Cook wouldn't be as successful as co-founder Steve Job at developing new blockbuster devices. Cook has promised several times over the past year that Apple would enter "exciting new product categories" in 2014. And in May, Eddy Cue, head of iTunes and the man behind Apple's $3 billion acquisition of headphone and streaming service Beats, upped the pressure by boasting that the consumer electronics giant is working on its "best product pipeline in 25 years."Apple Watch keeps up with the times (pic...See full gallery1 - 4 / 15NextPrevAlong with boasting about new devices, Apple also has taken steps to return more cash to shareholders. The company in April said it planned to give investors six additional shares of stock for every Apple share they owned as of June 2. Because of the split, shares now trade at a much lower level than in the past, but it also makes the stock more accessible to investors. It's much cheaper to own a chunk of Apple at about $100 versus $600. The split went into effect in June, with shares trading at about $93.The Apple iPhone 6 and iPhone 6 Plus have...See full gallery1 - 4 / 22NextPrevThe stock split came as part of Apple's effort to meet the demands of current shareholders, as well as attract a new group of investors. Under the leadership of Cook, Apple started returning some of its massive cash hoard to investors. Shareholders, such as activist Carl Icahn, asked for even more, and Apple earlier this year revealed a big increase to its dividend and share repurchase program, along with the stock split. The company at that time boosted the amount of cash that it's returning to shareholders by about $30 billion to more than $130 billion.
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