Commentary

Apple And Beats -- I Like The Sound Of That

Apple and Beats: two great tastes that go great together.

When the Internet went abuzz last week with the news of the impending acquisition of Beats Electronics by Apple, everyone chimed in with their two cents.  I was surprised at first to see these two companies getting together, but after I thought about it a while, it started to make more sense.  I was also surprised, though I shouldn’t be, about the negative comments posted by people in our industry who had to chime in with their viewpoints about the relative strengths of both Apple and Beats.

I know the old adage about opinions being like some-other-body part (everyone has one).  I also know negative comments generate good press, so I get it.  All that being said, how can anyone throw stones at this merger? 

Apple is one of the most revered brands in the world, along with Nike, Coca Cola and BMW.  Brand managers and marketers around the world would kill to work with these companies and shape their future. In fact, what these brands do tends to shape the marketing industry as a whole.  Their moves have impact, plain and simple.

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Beats and its various products has become one of the fastest-growing brands in the world.  This is especially true within the younger demographic.  It’s a status symbol applied to a simple concept like headphones.  Its panache carries over to other areas, and the merger brings the most well-branded and hip consumer electronics brands together.  That is a literal match made in heaven.

Of course that beauty is only skin deep.  The additional rumors are that Jimmy Iovine and Dr. Dre may take executive positions within Apple, leaning heavily on their creative and trend-setting abilities.  If you thought Apple needed to fill a void in terms of creativity, this just about does it.  Not only are these two of the most effective tastemakers in the world, but they also have direct and open lines of access to everyone else who sets the trends for the world.  Jimmy has produced some of the greatest music of the last 30 years.  Dre has probably produced or influenced the rest of it.    They can show new ideas to their entertainment cohorts, gather input, and integrate it into the design of new Apple products for years to come.  Do they have MBAs and engineering degrees?  No.  Does it matter?  No.

I apologize if this sounds like a love fest, but the fact is reading criticism from “industry pundits” about people at this level is frustrating. Put the CEO of Beats against the CEO of your company and compare the track record of the two.  I hesitate to find a pundit with the credentials to hold up their criticism.

On a more positive note, I am looking forward to seeing how these two brands work together.  I’m certain none of this will impact the iPhone 6 release this fall, but the next-gen will likely have some of the secret sauce embedded in.   I’m also sure we’ll be seeing lessons learned in marketing on both sides, further entrenching both Apple and Beats in the collective psyche of audiences with disposable income.  Call me an Apple Lover if you like (I am), but these are the kinds of decisions you see leading brands make.  It’s like peanut butter and chocolate.  It’s like peas and carrots.  It's Apple and Beats. 

I like the sound of that.

1 comment about "Apple And Beats -- I Like The Sound Of That".
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  1. David Shor from Prove, May 15, 2014 at noon

    A good read, Cory. I particularly like your commentary on how outsiders like Iovine and Dre might be the shot in the arm that helps Apple move beyond the device scope Apple seems to be languishing in and really think about what the next lifestyle products are for "Beapple."

    The risk, of course, is that Apple will do what Sony did--get into everything. I think it will be interesting to see what the next lines after headphones are. I think it's virtual reality and wearables naturally.

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