Beats
Beats Electronics is a division of Apple which produces audio products. Headquartered in Culver City, California, U.S. the company was co-founded by rapper and hip hop producer Dr. Dre and Interscope-Geffen-A&M Records chairman Jimmy Iovine. Beats’ product line is primarily focused on headphones and speakers, marketed under the brand Beats by Dr. Dre (rendered beats by dr. dre); in particular, its headphone line characteristically places a heavy emphasis on bass, which, in advertising material, Dr. Dre stated allows listeners to hear “all” of the music. Beats’ popularity was primarily influenced by its marketing practices, centered on product placement and branding deals with celebrities that were accessible due to Iovine’s professional network. In 2012 NPD Group reported that Beats’ market share was 64% in the U.S for headphones priced higher than $100, and the brand was valued at US$1 billion in September 2013. For a period, the company was majority-owned by Taiwanese smartphone maker HTC—the company reduced its stake to 25% in 2012, and sold its remaining stake back to the company in 2013; concurrently, Carlyle Group replaced HTC as a minority shareholder, alongside Dr. Dre and Iovine, in late 2013. On August 1, 2014, Apple Inc. acquired Beats for US $3 billion in a cash and stock deal, marking the largest acquisition in the company’s history. Beats have been widely criticised for the average sound quality within their systems at such ‘high end’ prices. Although quality has improved in new devices, the overall experience is regarded as under-par with rival companies such as Bose Corporation and JBL.
