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Apple Fires Beats Personnel after Acquisition Ends

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When Apple bought Beats Electronics, it was the biggest acquisition for the Cupertino giant. Beats cost Apple $3 billion. Apple bought Beats for several reasons. One would be because of the headphones department, whose product has a widely renowned stylish image. Another reason is represented by Beats more recent service, Beats Music. The music streaming service offers human curated playlists, a trendy feature in the world of online radios filled with automated playlists. Nevertheless, the acquisition means that Apple fires Beats personnel. We really hope that the laid off workers will find other jobs soon, because according to a study, unemployment raises mortality risks. Coming from Beats might be an advantage on the labormarket.

While Dr. Dre might be happy about the transaction, not all of Beats’ employees will share his joy. At the moment Beats has around 700 workers. An unidentified informer claims that around 200 employees will be laid off, according to Bloomberg. Because the discussions were private, the name of the informer could not be disclosed. The job cuts might start as of August 1.

“We’re excited to have the Beats team join Apple, and we have extended job offers to every Beats employee,” Tom Neumayr from Apple stated. “Because of some overlap in our operations, some offers are for a limited period and we’ll work hard during this time to find as many of these Beats employees as we can another permanent job within Apple.”

Probably the jobs to disappear will be in sectors overlapping in both companies. So human resources and finance might be the sectors to see layoffs. At the end of June, Apple had 41.300 employees.

What happens after Apple fires Beats personnel

Some people from Beats will join Apple directly. Luke Wood and Ian Rogers, as well as creative boss Trent Reznor will work with Apple soon. The headphones and speaker workers will transfer to Apple as well.

Apple Fires Beats Personnel from redundant positions.

Apple plans to translate Beats Music to the iTunes platform, but 9to5mac says that according to sources, the transition will be difficult, because of the different architectural characteristics. As a consequence, Beats Music will suffer a redesigning process. So Apple fires Beats personnel, but most of them will work on adapting the platform to Apple services.

Apple recently bought another streaming app, Swell. The app acts similarly to music streaming radios, only that it selects news instead of music. Streaming services are highly popular and Apple wants to make sure it has as many avenues as possible for future development.

Apple Acquired Beats Electronics and it Paid $3 Billion for It

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Apple Acquired Beats ElectronicsWe reported earlier this month that Apple intends to buy Beats Electronic and now we’ve gotten confirmation that the deal went down in California. Apple acquired Beats Electronics and it paid $3 billion for it!

Apple Acquired Beats Electronics

Apple confirmed today that it paid $3 billion for Dr. Dre’s company’s Beats Electronics. The company was founded in 2008 by Dre and chairman of Interscope Geffen A&M Records, Jimmy Iovine. Aside from making premium headphones, earphones and speaker, it has patented the popular Beats Audio technology and has one of the most successful streaming music subscription services available on the US marker, Beats Music.

What sets Beats Music apart from other music streaming services is that it has professionally-curated playlists, meaning that there are music professionals who put the lists together, helping you find the music you will love.

Many have wondered why Apple has done this surprising move, but we don’t believe it’s a surprising move at all. Actually, the purchase makes a lot of sense if you look at the statistics of digital downloads. The numbers aren’t in Apple’s favor, as the numbers are declining rapidly. Consumers love streaming services, such as Spotify and Pandora and Apple had to have a piece of that streaming cake.

Apple’s senior vice president of Internet Software and Services, Eddy Cue, explained Apple’s move in an official statement:

“Music is such an important part of Apple’s DNA and always will be. The addition of Beats will make our music lineup even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years.”

Apple will keep the Beats brand, and it will operate under the Apple umbrella. The two Beats founders, Dre and Iovine will join Apple.

Jim Cook, CEO of Apple explained why they chose Beats Electronics:

“These guys are really unique. It’s like finding the precise grain of sand on the beach. They’re rare and very hard to find […] We love the subscription service that they built – we think it’s the first one that really got it right.”

Free streaming with iTunes Radio sounds like the bee’s knees, doesn’t it? What are your thoughts on this purchase? Do you think Apple made the right choice? Will Apple and Beats Electronics bring listening to music to a whole new and improved level? Do you have a Beats Music subscription?

Apple Intends to Buy Beats Electronics

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beats by dr dreIt’s been quite some time since we had some really hot Apple rumors, so in case you missed them, here are the freshest news related to the tech giant. According to recent reports, is seems that Apple intends to buy Beats Electronics, the high – end headphones company (the largest one in America for that matter) founded by Dr. Dre. While Beats Electronics is relatively new to the market, it gained a tremendous success among musicians, celebrities and people appreciating sturdy, high – quality, high – design over – the – ear headphones. If you add to this equation the fact that HTC One, also called the best smartphone in the world, features Beats Electronics speakers and received international ovations related to the sound quality, you may get a clearer picture on why Apple intends to buy Beats Electronics and why it is willing to spend $3.2 billion. If they actually close this deal (although officials from Beats and Apple didn’t confirm the negotiations when questioned), this purchase will be remembered as the largest acquisition in the history of Apple, something that late Steve Jobs might not be so happy about.

But is it more to this deal than the eye can see?

In the last decade, Apple got us used to high – end fashionable products that appeal to the elites and a $300 – $400 a pair of headphones isn’t something to scare customers away. But according to the specialists from New York Times and Bloomberg who covered this subject, it’s not like Apple is going to buy Dr. Dre’s company, put the logo on the headphones and ship them around the world as the next big thing in Apple gadgetry. According to Adam Satariano from Bloomberg News,

[quote]A deal for the Santa Monica, California-based company, which was founded by music-industry executive Jimmy Iovine and hip-hop artist Dr. Dre, would bolster Apple’s online music capabilities by giving it ownership of the Beats Music service that started earlier this year. For $10 a month, subscribers get unlimited access to all of the songs in the service’s catalog through a smartphone, tablet or Web browser.[/quote]

While Apple is still the most powerful player in the digital music industry, it has to strengthen its position, as competition is fierce and is coming from the likes of Pandora and Spotify. You can’t ignore the irony, as back in the day, Iovine and Dr.Dre started making and aggressively promoting their high – end headphones as an answer to the mass hysteria and world -wide trend of listening to music on the go with the help of iPods and in – ear headphones. Now, Apple is aiming big by purchasing this company, as it won’t just narrow its strategy to the digital music world, but will make the Beats Electronics headphones a part of their developing hardware and devices. In the words of Ben Bajarin, a consumer technology analyst for Creative Strategies quoted by the New York Times,

This would have to fit into a much longer, more innovative strategy around perhaps the hardware and the service.

Until official news about the purchase are released, let’s wait and see what happens in the world of the largest tech players.

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