HTC must be kicking itself
It’s looking good for music supremo, Dr Dre, who is behind Beats Electronics which Apple looks set to buy for around £1.9 billion ($3.2 billion). Whilst the general populace associates the Beats brand most closely with its range of high-end stereo headphones, the mobile industry is paying much closer interest in its music streaming service. Analysys Mason believes that Apple will take some of the best aspects of the Beats Music streaming service, such as the curated recommendation system, and put them into its own iTunes music services. Indeed, GoMo News reckons that the headphones aren’t sufficiently cutting edge enough for Apple so they could actually damage its brand. Divest yourself of that bit, Mr Cook.
Martin Scott, head of Analysys Mason’s consumer services research practice, reckons that Beats Music’s ‘curatorial’ approach to music recommendation (getting musicians and celebrities to recommend tracks and playlists, not just an engine) “should have good synergies with the Apple brand.”
If you’re looking at increased competition from the likes of Amazon – and even Google with Play, then putting Dr Dre in the iTunes mix is probably a very good idea.
Plus Scott says that Beats Music is already well integrated with AT&T’s handset plans – a double bonus for Apple’s iPhone sales and the fact that Apple loves its home market best.
So why would Taiwan’s HTC be kicking itself? Well, HTC realised the value of the premium audio experience back in 2011, when it acquired a majority stake in Beats Electronics.
However, its revenue situation pushed HTC to downgrade and then divest its investment in the company across 2012 and 2013.
Scott claims that, “HTC continues to present itself as a brand for audiophiles through its built-in sound systems in the HTC One and MTC One M8.”
Nope. We reckon that HTC is kicking itself from not being able to sell its previous majority stake to Apple.
In Martin Scott’s comments on Dr Dre, he managed to shoot off at a massive tangent by suddenly talking about wearables.
He reminds us that in February 2014, Apple was successfully awarded a patent for a health-monitoring earphone system.
We’re not quite sure what that has got to do with headphones but he informs us that his company estimates that around 20 million US smartphone owners are already using health and fitness apps.
Now Apple CEO, Tim Cook is maintaining Apple’s fortunes. But the lack of innovation is once again plain with the Beats Electonics move.
What ever happened to the iWatch and do you really think you can paint these acquired devices as iHeadphones, Mr Cook?