Apple Buys Beats Electronics. Why?

[Geek-9pm]

UNLESS you have kept your cans on 24/7 this past week, you may have heard the rumor that Apple is buying Beats Electronics, a maker of trendy (and costly) headphones started by record mogul Jimmy Iovine and rap do-it-all Dr Dre, for $3.2 billion. Dr Dre (pictured) bragged on video of becoming the “first billionaire in hip-hop”. Apple, as usual, said nothing.

http://www.economist.com/blogs/schumpeter/2014/05/will-apple-make-phones-call
Say this s is true, Why would Apple buy a headphone company?
If Apple Buys Beats It Won't Be About Headphones

Apple has over $150 billion in cash in the bank and that sum is growing. So a $3.2 billion purchase isn’t actually all that much for Apple. It’s just a little over 2% of their cash stockpile. But the price does seem inexplicably large for a company that makes a commodity like headphones and has a streaming music service that hasn’t taken off.

[DaveLembke]

Surprised that they would buy Beats out when for a fraction of the price they could have engineered their own.

I'd be curious as to if its a way for someone at apple who has a monetary interest invested in Beats to give themselves a payout from Apples cash stockpile. What better way to hide a extremely large bonus to self than to roll it hidden into a buyout.

[Geek-9pm]

It is not about headphones.  It is about music copyrights and distribution. If you have the copyright, you control the distribution. It seems  Beat Electronics has some niche in the music industry that Apple wants.

[DaveLembke]

Ok that makes more sense and justifys the crazy purchase price.

[jackj]

Apple wants to buy The Beats not for their headphones although someday we may see internet headphones. They want their market and their streaming service.  I heard more things about Apple TV then streaming when Steve was is charge.  Look at the advantage for the consumer a monthly fee versus per song download charge. 

[DishyBishy]

I wonder what it is that Apple really wants. It's more than likely it's for the music rights like the articles have said but I wonder if they plan to do more with it.

For various reasons, I'm not an Apple user, nor do I have Beats headphones. But this makes me wonder what will Apple purchase next and if, eventually, I'll have to succumb to owning or using something Apple.

[patio]

It's the distribution network they want...plain and simple.