Does Apple Own Beats And Bose

American audio products manufacturer

Beats Electronics LLC

Type	Subsidiary
Manufacture	Consumer electronics
Founded	2006; 16 years ago  (2006) in Santa Monica, California
Founders	Dr. Dre Jimmy Iovine
Headquarters	Culver City, California , United States
Area served	Worldwide
Key people	Matthew Costello (COO)
Products	Headphones Speakers
Parent	Apple Inc. (2014–present)
Website	www.beatsbydre.com

Beats Electronics LLC (also known as Beats by Dr. Dre, or simply Beats by Dre) is an American consumer audio products manufacturer headquartered in Culver Metropolis, California.^{[1] [2]} The company was founded by music producer Dr. Dre and tape visitor executive Jimmy Iovine. Since 2014, it has been an Apple subsidiary.

The subsidiary'due south product line is primarily focused on headphones and speakers. The company's original production line was manufactured in partnership with the AV equipment visitor Monster Cable Products. Following the finish of its contract with the company, Beats took further evolution of its products in-house. In 2014, the visitor expanded into the online music marketplace with the launch of a subscription-based streaming service, Beats Music.

In 2011, NPD Group reported that Beats' market share was 64% in the U.S. for headphones priced higher than $100, and the brand was valued at $ibillion in September 2013.^{[3] [iv]}

For a period, the visitor was majority-owned past Taiwanese smartphone maker HTC. The company reduced its stake to 25% in 2012, and sold its remaining pale back to the company in 2013. Concurrently, Carlyle Group replaced HTC equally a minority shareholder, alongside Dr. Dre and Iovine in late 2013. On August one, 2014, Apple acquired Beats for $3 billion in a cash and stock bargain, the largest acquisition in Apple tree's history.

History [edit]

Germination [edit]

Dr. Dre (seen in 2012), company co-founder

Beats was established in 2006 by music producer Dr. Dre and record company executive Jimmy Iovine.^{[ commendation needed ]} Iovine perceived ii key problems in the music manufacture: the affect of piracy on music sales and the substandard audio quality provided past Apple tree'south plastic earbuds. Iovine recalled that Dre said to him: "Man, information technology's one thing that people steal my music. Information technology's some other thing to destroy the feeling of what I've worked on." Iovine sought the opinions of musicians with "neat taste", such every bit M.I.A., Pharrell Williams, will.i.am, and Gwen Stefani during the early developmental stage.^[v] Beats initially partnered with Monster Cable, an audio and video component manufacturer based in Brisbane, California, to manufacture and develop the commencement Beats-branded products, and debuted its first product, Beats by Dr. Dre Studio headphones, on July 25, 2008.

Jimmy Iovine and David Guetta

To promote its products, Beats primarily relied on celebrity endorsements by pop and hip-hop music performers, including product placement inside music videos, and partnering with musicians and other celebrities to develop co-branded products.^{[v] [vi] [vii] [8]} Beats' use of endorsements by musicians helped the company aggressively target the young developed demographics.^[ix]

HTC purchase and non-renewal of Monster contract [edit]

In Baronial 2010, mobile phone manufacturer HTC acquired a 50.1% majority share in Beats for $309 million. The purchase was intended to allow HTC to compete with other cellphone makers by associating themselves with the Beats brand,^[ten] as the purchase also granted HTC exclusive rights to manufacture smartphones with Beats-branded sound systems.^[11] Despite its majority conquering, HTC allowed Beats to operate equally an autonomous company.^[eleven] Luke Wood, President of Beats in May 2014, joined the company in Jan 2010, when the visitor was a "licensing business". Forest had previously worked under Iovine at Interscope Records.^[12]

On Jan 19, 2012, BusinessWeek reported that Beats and Monster would not renew their production contract and their partnership ceased at the end of 2012. Dre and Iovine subsequently decided to oversee the entire operation of the company, from manufacturing to R&D,^[12] and aimed to double its workforce to around 300 employees. Monster would ultimately begin marketing its own competing line of premium headphones aimed towards an older demographic.^[vi] At the time, neither Dre, Iovine or Woods were experienced in the operation of a company at such a grand level, but Wood explained in 2014:

I didn't accept manufacturing feel, just I had experience of building something from scratch… Every time we put out an album, it was basically like building a new business--a unique bandage of characters, unique challenges and opportunities, and trying to figure out a unique path to market place.^[12]

In October 2012, Beats unveiled its kickoff two self-adult products, "Beats Executive" headphones and "Beats Pill" wireless speakers—Iovine believed that the company would at present have to "control [its] ain destiny" in order to continue its growth. Iovine also commented on how other headphone makers had attempted to emulate Beats' glory endorsement business model (including Monster themselves, who unveiled Earth, Wind and Fire and Miles Davis-themed headphones at the 2012 Consumer Electronics Bear witness),^[6] stating that "some of our competitors are cheap engineers who take never been to a recording studio. You can't just stick someone's proper noun on a headphone that doesn't know anything about audio."^{[half dozen] [13] [fourteen]} Post-obit the decision to transform Beats into an autonomous entity, the visitor's revenues reached the $one billion mark, according to Iovine.^[12]

HTC sale and Beats Music [edit]

The logo for Beats Music.

In July 2012, HTC sold back one-half of its pale in Beats for $150 1000000, remaining the largest shareholder with 25.1 per centum.^[fifteen] The sale was intended to provide "flexibility for global expansion while maintaining HTC'southward major stake and commercial exclusivity in mobile".^[x] In August 2013, reports surfaced that Beats' founders planned to buy back HTC'due south remaining minority stake in the visitor, and pursue a new, unspecified partner for a hereafter investment.^{[16] [17]}

On September 27, 2013, HTC confirmed that it would sell its remaining 24.84% stake in Beats back to the company for $265 one thousand thousand. Meantime, Beats announced that the Carlyle Grouping would make a $500 million minority investment in the company.^{[18] [19]} The overall deal valued Beats Electronics at $1 billion^[three] and helped HTC turn a net turn a profit of $x.three million for the fourth quarter of 2013, following HTC'due south outset quarterly loss in company history.^[20]

The appointment of a new chief operating officer (COO), a role previously filled by Wood,^[12] was announced in early on November 2013. Matthew Costello, formerly of IKEA and HTC, was formally appointed to the role in May 2014.^{[21] [22]}

On Jan 21, 2014, the company launched Beats Music, a subscription-based online music streaming service.^[23] Prior to the launch of the service, Beats stated that it intends to provide a different type of streaming experience to what was available on the marketplace at the time. Additionally, the service would only be available to consumers in the U.S. at inception.^[24] Chief executive of Beats at the fourth dimension, Ian Rogers, said:

We wanted to build a music service that combined the freedom of an on-demand subscription service—unlimited, uninterrupted streaming and downloads of tens of millions of songs – but layer on tiptop features that would give y'all that feeling only music that moves you lot tin can requite. The right song at the right time will give you a chill. Make you lot pull someone shut. Nod your head. Sing in the mirror. Ringlet downward the car window and creepo the volume to the right.^[24]

Subsidiary of Apple Inc. (2014–present) [edit]

On May 8, 2014, the Fiscal Times reported that Apple was in negotiations with Beats to purchase the visitor for $3.ii billion—the largest purchase in Apple'southward history and well ahead of its $429 million purchase of Side by side in 1996.^[25] The impending deal was prematurely and indirectly revealed in a photo and YouTube video posted to Facebook by Tyrese Gibson on May viii, 2014; the video documented a celebration in which Gibson and Dr. Dre made boasting remarks about the acquisition, with Dre declaring himself the "showtime billionaire in hip hop", while Gibson declared that the "Forbes listing" had inverse. Both the photo and video were removed from Facebook the following forenoon, but both remain on Gibson's YouTube aqueduct.^{[12] [26]} Indeed, analysts estimated that the rumored deal would make Dr. Dre the beginning billionaire in the hip-hop music industry in terms of net worth, assuming that he held at least 15% ownership in the visitor prior to the deal. Dr. Dre was listed with a net worth of $550 million on Forbes' The World'southward Billionaires 2014 list. Information technology was also estimated that the Carlyle Group would receive a profit of $one billion from the sale of its minority stake in the company.^{[xviii] [27] [28]}

On May 28, 2014, Apple officially announced its intention to acquire Beats Electronics for $three billion—with $400 1000000 to be paid in Apple stock and the remainder in cash. Some reports suggested that the reduction in value may have been a consequence of lower-than-expected subscriber numbers for the Beats Music service.^[12] Iovine felt that Beats had always "belonged" with Apple, every bit the company modeled itself after Apple'southward "unmatched power to marry civilization and engineering science". In regard to the deal, Apple CEO Tim Cook stated that "Music is such an of import role of all of our lives and holds a special place inside our hearts at Apple. That'southward why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world." Across stocking Beats products at its retail outlets, Apple did non provide any further indications over how Beats would exist integrated into its production line at the time, and whether Beats Music, which competed with Apple's ain iTunes Radio service, would continue to operate subsequently the acquisition.^{[29] [30] [31]}

The conquering closed on August 1, 2014. Dr. Dre and Iovine were hired every bit executive employees,^{[32] [33]} and worked at Apple for years after.^[34] To eliminate redundancy, Apple planned to lay off 200 workers from Beats' workforce of around 700.^{[35] [36]} Beats Music was discontinued effective with the launch of Apple Music on June 30, 2015.^{[37] [38]}

Bose lawsuit [edit]

In July 2014, Bose Corporation sued Beats Electronics, alleging that its "Studio" line incorporated dissonance counterfoil engineering that infringed five patents held by the company. Bose has also sought an injunction which would ban the infringing products from being imported or sold in the Usa.^{[39] [twoscore]} The lawsuit was settled out of courtroom. Apple tree pulled all Bose products from its retail outlets, although it is unclear whether information technology was in response to the lawsuit, an ambush marketing conflict involving Beats and the NFL (which had recently named Bose as ane of its official sponsors, and thus fined a player for displaying the Beats logo during an official activeness), or as a consequence of Apple's acquisition of Beats.^[41] However, two months later on, Bose products returned to the shelves of Apple Stores. The companies settled in October 2014: details were not disclosed.^[42]

Monster lawsuit [edit]

In January 2015, Monster Inc. sued Beats for fraud, alleging that the company had used illicit tactics to forcefulness Monster out of the venture whilst retaining rights to the technologies and products that information technology had co-developed, and engaged in collusion to harm Monster's own audio products business. Monster argued that the acquisition of Beats past HTC and its founders' subsequent buyback was a "sham" to take command of Monster's pale in the company—which could have been valued at over $100 one thousand thousand in the Apple purchase, that the visitor had "concealed" the role of Monster and its CEO Noel Lee in the design and engineering of its products, and that "had the partnership expired on its own terms, there would take been no transfer of Monster's years of work [onto the company]". Monster besides alleged that Beats had partaken in anti-competitive practices with retailers to forcefulness those offering Beats products to not offer Monster's competing products.^{[43] [44] [45]}

In June 2015, The Wall Street Journal reported that in retaliation for the lawsuit, Apple Inc. revoked Monster's membership in the MFi Programme on May 5, 2015, meaning that Monster can no longer manufacture licensed accessories for iPhone, iPod and iPad products, and must cease the auction of existing licensed products that contain the certification or technology licensed through the plan past September 2015.^[46]

The case was dismissed in August 2016, with a Supreme Court ruling that Beats "had the right to finish the agreement equally of Jan 7th, 2013 or when there was a transaction resulting in a change of control of Beats", and that Monster "did not obtain the right to approve the alter of command. Nor did the agreement require that any change of control had to be objectively reasonable".^[47]

Products [edit]

A pair of Beats Headphones

Beats' original production line were Beats past Dre headphones. In promotional materials, Dre outlined the line'due south advantages by alleging that listeners were not able to hear "all" of the music with most headphones, and that Beats would allow people to "hear what the artists hear, and mind to the music the fashion they should: the way I do". In comparing to most headphones, Beats products were characterized by an emphasis towards producing larger amounts of bass, and are peculiarly optimized towards hip-hop and popular music.^{[4] [48] [49]} In Oct 2012, Beats unveiled its first 2 cocky-developed products, the Beats Executive noise-cancelling headphones (to compete with similar offerings by Bose and Sennheiser) and the Beats Pill portable speaker.^{[half dozen] [14]} In October 2015, Beats launched a new collection of speakers including the upgraded Beats Pill+ Speaker.^[l]

Headphones [edit]

Beats Solo Pro [edit]

The Beats Solo Pro is an on-the-ear way headphone. Along with the Powerbeats Pro true-wireless earphones, they are role of a new generation of Beats products made from the basis upwardly with Apple. They are the showtime on-ear headphones made past Beats to feature active noise canceling. They were sold aslope the Solo three until November ane, 2021.^[51]

Beats Solo iii Wireless [edit]

This is an on-ear style headphone. It tin last for 40 hours on a unmarried charge or indefinitely when plugged in via the headphone jack.

Beats Studio 3 Wireless [edit]

These are currently the high-stop wireless headphones that Beats offers. They connect by Bluetooth and take xl hours of battery life, with 22 hours of battery life with adaptive noise cancelling on. They feature Apple's W1 chip for quick connexion to Apple devices running iOS 10, macOS Sierra, or watchOS four or afterwards. They also feature pure adaptive dissonance cancelling engineering science, which uses microphones both inside and outside the ear cups to measure sound levels based on the environment. If there is any headgear or eyewear on the user'south head, information technology calibrates the dissonance cancelling and book level accordingly. The headphones come in a broad range of colors and editions, including blackness, blue and special collections such as the "NBA Collection".

Earbuds [edit]

On September vii, 2016, Powerbeats³ were released. On February ten, 2017, BeatsX neckband-way headphones were released.^[52] Powerbeats Pro were released on May 10, 2019, in the United states and 2 weeks after for UK and Europe.^[53] The latest iteration of Powerbeats was released on March xviii, 2020, sharing pattern concepts similar to that of the Powerbeats Pro from the yr prior.^[54] On Oct fourteen, 2020, Beats Flex neckband-mode headphones were released as the development of BeatsX.^[55] On June 14, 2021, Beats Studio Buds were released, and priced at United states$149.99.^[56]

Beats Sound [edit]

The company has also licensed the Beats brand, under the name Beats Audio (stylized in lowercase as beats audio), and technology to other manufacturers. In 2009, HP began to offer personal computers equipped with Beats Audio systems, beginning with its HP Envy line.^[57] The system features a software equalizer with a preset that HP marketed as being optimized for higher quality sound output.^[58] Beats Electronics ceased its partnership with HP following its purchase by Apple tree Inc.; HP subsequently entered into a similar agreement with Bang & Olufsen.^[59]

Post-obit its conquering of a pale in the visitor, most new HTC smartphones began to be released with Beats Audio software, offset with the HTC Sensation XE/Forty with Beats Audio in September 2011.^[60] The software was to be included in well-nigh new HTC devices, such every bit the One series.^{[61] [62]} The Sensation XE and Rezound were also bundled with Beats by Dre earbuds, but HTC abandoned the practice on hereafter devices. An HTC product executive claimed that despite the prominence of the Beats brand, "an accessory like the headphone doesn't factor in when someone is buying a smartphone".^[63]

Car audio [edit]

In 2011, Beats reached a deal with Chrysler LLC to characteristic Beats-branded audio systems in its vehicles. The kickoff vehicle under the partnership was its 2012 Chrysler 300S luxury vehicle, which included a 10-speaker Beats by Dr. Dre sound organisation.^{[17] [64]} Beats audio systems have also been bachelor in models from Fiat Chrysler Automobiles' other brands, including Dodge, Chrysler, and Jeep.

Automobile brands that currently take Beats audio systems available in its vehicles are Fiat, Volkswagen, and SEAT.^[65]

Beats Music [edit]

On July ii, 2012, Beats announced information technology had acquired the online music service MOG, in a purchase reported to have been betwixt $ten million and $16 million. Beats stated that the acquisition was part of the visitor's goal to develop a "truly end-to-end music experience". The acquisition did not include the company'southward weblog and advertizing network, the MOG Music Network,^{[66] [67]} which was sold in a separate transaction to the broadcasting company Townsquare Media in August 2012.^[68]

While MOG indicated that it would continue to operate independently with no immediate change in service,^[67] Beats subsequently announced a new subscription-based online music service, known as Beats Music, which launched in January 2014. In comparing to its competitors, such as Spotify and Google Play Music, the service emphasizes recommendations by music professionals alongside algorithmic recommendations.^{[23] [69]} MOG was close down on May 31, 2014, and existing users were directed to Beats Music.^[70] Beats Music was in plow replaced by Apple Music in June 2015; the service also incorporated a Beats-branded online radio station, called "Beats 1", simply the proper noun was subsequently changed to "Apple Music 1".^{[37] [38]}

Dolby Atmos Support [edit]

In May 2021, Apple announced spatial sound with Dolby Atmos support. Apple Music will automatically play Dolby Atmos tracks on AirPods, AirPods Pro, AirPods Max, and all Beats headphones with an H1 or W1 chip.^[71]

Critical reception [edit]

Some critics claim that Beats products emphasize appearance over quality and part, arguing that more durable and amend-sounding products are available for the same cost or lower.^{[72] [73]} Tests washed on an HTC smartphone with Beats Audio indicated that the audio technology is a combination of audio equalization that boosts the depression (bass) and high ends of the audio range, audio compression, and audio amplification.^[74] Beats' electric current president disagreed with accusations that Beats' products were "bass heavy", citing that their products were non for reference only rather for playback.^[75]

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74. ^ Sakr, Sharif. "HTC Sensation XE with Beats Audio review". Engadget. AOL. Archived from the original on February 22, 2015. Retrieved Jan vii, 2015.
75. ^ "Beats by Dre president defends headphone bass quality". BBC News. July 15, 2014. Archived from the original on February 19, 2015. Retrieved January 7, 2015.

External links [edit]

• Official website

Source: https://en.wikipedia.org/wiki/Beats_Electronics

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