I agree that the long term hidden asset is the content to populate Apple's platform of devices. My nephews all got Beat earbuds for Christmas last year. I found that they were WAY too loud and bass heavy. They really couldn't compete with my old Sony earbuds I use for exercise, yet they cost about $100. My sister didn't really care for my argument about sound quality and seemed to be more concerned about brand recognition from her kids. Therein lies Apple's interest. Some types of rock and roll are best enjoyed being played loud, but my first reaction (I guess I am getting old) to the Beats product was that the company is going to create a generation of deaf kids.
Apple to Acquire Beats Audio
The business wires are ablaze today with the story that Apple is acquiring Beats for $3B. Curiously, the press consensus (and pre-market reaction) is that it's a bad move for Apple, either because they're overpaying or because Beats' phones are poorly regarded (a curious stance, since Beats has 70% of the premium market). I disagree--$3B is bar change for Apple and Beats, I assume, is an exceptionally high-margin cash cow with tremendous brand cachet among consumers, if not audiophiles. I'm not personally sold on Beats streaming service, but I'd be surprised if it wasn't successful. Interesting move, in any event.