Why did Apple buy Beats? Some speculate that it could be because Apple wanted to hire the likes of Jimmy Iovine and Dr. Dre who were more in tune with what’s cool. Some speculated it could be for Beats Music, while others think it might be for the Beats Audio headphones brand. Sure, all of that might be a possibility, but what transpired at Apple that led to the purchase?
Well BuzzFeed managed to get insider information on why Apple made the decision that they did, and it seems that the reason that led to their acquisition of Beats had largely to do with the “arrogance” of the management at Apple. For starters, it seems that management ignored Spotify and other streaming competitors out of alleged arrogance.
According to an anonymous Apple employee, some managers completely chose to ignore the likes of Spotify, refusing to open the app or even using the software. It went as far how some members of management didn’t even know what Spotify, assuming it was a radio service, as opposed to an on-demand streaming service which is what it really is. “The management in particular were pretty much tone-deaf in what Spotify was and that’s why they’re panicking now. They didn’t understand how Spotify worked, which is why they thought iTunes Radio would be a Spotify killer.”
A former Apple employee said, “They’re having trouble capturing the younger generation. The Apple coolness is kind of fading away.” However it seems that with the acquisition of Beats, Apple’s cool factor has been raised, at least in the eyes of students, who felt that with Apple buying Beats, it made them more “cool”. Of course we can’t verify the authenticity of the claims made by former and anonymous Apple employees, but if true, it seems like Apple’s arrogance cost them $3 billion. What do you guys think?