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In 2013, Beats owned 64% of the high-price headphones market.

Stashed in: @drdre, Beats

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John Biggs explains why Apple wants Beats:

Remember that it made no sense for Apple to buy SoundJam MP, an MP3 player and media sync system, in 1999. The company made a basic desktop music player and was relatively unknown in the market. In fact, in 1999 it wasn’t even certain that the MP3 would take off. Napster launched in June 1999 and died soon after. Why, then, would Apple want an arguably small-fry MP3 player app?

On January 1, 2001, SoundJam MP turned into iTunes 1.0.

In 2013, Beats owned 64% of the high-price headphone market. That’s the kind of market share any executive could get behind. It was worth a billion dollars last year, which makes the $3 billion price a little low. Why does Apple need Beats? Perhaps they want shore up their cachet with young music lovers. Maybe they want a source of steady revenue. Maybe they love bass-heavy, bombastic sound out of headphones that look like Lobot’s cybernetic enhancements. Maybe they want to meet Dre. But know that this merger makes perfect sense, even if we can’t see why just yet.

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