When the Apple deal with Beats started to make its way through the headlines, my first thought was “good fit.” Â And although it has gotten plenty of mixed reviews in the media, Apple got what it wanted: lots of buzz (both with the media and a younger consumer segment), as well as a product that fits with their high end consumer branded image.
At $3.2 billion, the Apple deal with Beats is by no means be cheap. And this may be the reason behind some of the early grumbling. But Apple clearly has plans to optimize profits through its expansive distribution and brand power. And again, it hits a key demographic that keeps Apple young and hip.
As for for Apple’s stock price, it seems unlikely that this deal will have a huge affect. I say this for two reasons: 1) The deal is still small when compared to Apple’s super-sized pile of cash and 2) The stock has been on a pretty good run so it was overdue for some selling.
Even so, the media headlines are having plenty of fun with this deal, offering a ridiculously wide range of opinions. What do you think? Is the Apple deal with Beats Electronics as hip as it appears?
No position in any of the mentioned securities at the time of publication. Â Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
