JPMorgan: Apple may spin-off Beats Electronics business

“JPMorgan believes Apple acquired an ‘innovative service’ in Beats Music to help its shrinking iTunes business,” The Fly on the Wall reports.

“JPMorgan says it’s interesting that Apple’s acquisition press release lists Beats Music first and the electronics brand second even though most of the current revenue is associated with the electronics” The Fly on the Wall reports. “It believes Apple may spin-off the headphones and accessories business as the brand could ‘easily stand on its own.'”

Read more in the full article here.


    1. JPM literally didn’t get the memo:

      “Beats Electronics has become the brand of choice for headphones and speakers in both the music and sports world, just five years after its launch. They are among the most popular and highest-rated third-party products sold today in Apple’s retail and online stores. We see an incredible opportunity to bring Apple’s legendary design and engineering capabilities to these popular products under Phil’s leadership.” – Tim Cook

  1. Yet another anal-cyst trying to be smarter than Apple. He knows better. Struggling ITunes music? I bet others would love to struggle like Apple does. The real issue is music, basically music today blows. There are some exceptions of course but it’s no where like music was in the 60’s, 70’s, 80’s and part of the 90’s. It went off a cliff and became over produced crap with talent being a rare commodity. What the music industry needs is more non auto tuned wonders that can actually sing and write music. That won’t happen with artist not getting paid. Thanks pandora and spotify for paying the artist so little. When new music completely dries up you will scratch your heads and wonder why. Apple investing where it did May be a very strategic move or it could be a flop. I doubt it will be the later as Apple is a very calculating company these days. If they invest there is a good reason. No slub anal-cyst who couldn’t gage the tech market if his life depended on it. Is it Apples job to explain it to him and it’s competitors?
    At the end of the day we are just going to have to wait and see. However if you look at Apples track record there is usually a huge pot of gold at the end of most of their decisions. What I find remarkable is that this hack is not reporting on SamDung and MicroSoft-inthehead where clearly there is no rudder on their ship and no one at the wheel. In closing this article seems to me more FUD about Apple to stop the stock from going up. If they can spread FUD then they can lower the stock price a bit buy more stock then let it bounce back up and sell it. Stock manipulation at its finest. It will be much harder for them to do after the stock split. Also hasn’t JP Morgan been proven over the past 150 years to be nothing but scum bags? Stock manipulators? The cause of the last 5+ recessions/depressions? Who cares what they say. In fact you would do better to ignore what they say because they have their own dark plans of world domination.

  2. Distinct possibility. Especially after the doctor made a fool of himself on YouTube. Apple can’t be too pleased with that. It may take six months to a year but it will probably happen. Cut him loose.

  3. But then again …

    When you have a hot brand and all it needs is hot engineering, there is good reason to ramp up the designs, since it has the customers.

    Future notifications & signaling by in ear customizable buds, in pocket & around the bicep or neck notifiers point to a wide need for small audio output devices for lots of uses.

    1. Yes exactly there is a lot of potential leveraging this brand in ways that Apple would not want to do with its own brand. Further more you can argue to restore growth they will have to diversify more but again do they want to do that excessively with the Apple brand and dilute it? This gives them enormous flexibility and lots of scope to improve the quality of Beats products that already dominate its markets. And with Angela Ahrendts around they have the idea person to help make it happen.

  4. I have a feeling that “Beats” will become a new type a record label for new artists and maybe even current artist who’s contracts are up with the big record labels. Apple with have their Beats music Corp. produce and promote the artists on iTunes or Beats first at much better terms than what the big music labels currently offer artists. All I hear is how the artists are getting the shaft from the big labels and this will become a very enticing option for all music artists.
    Can you imagine Apple telling an artist “Well only take 30% and the rest is yours.” You’d have to insane not to jump at that offer.
    Just my take on it. But it sounds plausible.

    1. I’ve been hoping Apple would start doing that and maybe this is the real opportunity. Give artists a fair deal in music production and distribution. Then let them decide who they want to run their tours and promotion.
      Music companies essentially get the artists in debt by slapping on fees for all sorts of activity. All of that is baked into the final package so the artists never really know what they are getting into. It is only when they get a bit older and wiser that they realize that they have been screwed.
      So it will be better if the business is broken down into production, distribution and promotion so that there is transparency in the costs.

      1. Yep! Exactly. Apple-designed Bluetooth Beats Headphones with a mic to talk to Siri for hands-free control. Also included, a “Find my Beats” app built into the headphones. I’m sure they could figure out a way to do it. It would be cool to render them useless to a crook. Hell, maybe even solar panels on the top of the head band. I’m sure Ive could design some cool ones.

      2. Apple should partner with others in creating truly great headphones. People and companies who already have experience creating great headphones, not these late wannabes. Beat headphones, whatever their physical design attraction are not aurally designed well.

  5. So, JP Morgan thinks that a business that has stood on its own for several years could… Stand on its own?

    That is some serious insight, right there! Aren’t we so virtuously graced to have such sheer geniuses to show us these things?

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