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    Posted May 29, 2014 by
    Justynn
    Location
    Plano, Texas

    The Marketing Aspects of Apple’s Acquisition of Beats Electronics

     
    With rumors swirling for at least the past 3 weeks, Apple has confirmed their acquisition of Beats Electronics audio hardware and streaming music service. While many people have touted the acquisition in terms of Apple solidifying its streaming and music selling services on iTunes, I think that the purchase brings more than just luxury headphones and a streaming service to the future of the tech giant.

    For a while now, Apple and Samsung have been having a cold war within the smartphone world. With Samsung overtaking Apple on the world stage in smartphone sales, it still has yet to win the war in America. While it is well known that Samsung spends a very large amount of money on marketing, Apple has taken a different approach. Compared to Samsung, Apple spends very little on marketing (comparatively) and the marketing they do is all lifestyle related. I think that Tim Cook hit a homerun here, even if unintentionally, by further increasing the brand as a lifestyle brand. Now that Beats and Apple are one; Apple can now be seen as a “cool” brand and less of a yuppie one to people who care about that when deciding to make a purchase.

    The user base of Beats and the following that Dr. Dre has in the hip hop community automatically opens up a new user base for Apple to market their products and services to. Consumers who make lifestyle decisions based on their culture identity will now take a harder look at what Apple has to offer. This could mean even more revenue for their existing products such as the iPhone and the iPad of which sales have been down recently.

    With a potentially new user market, and new found status in that market as a lifestyle brand, Apple will have an easier time selling those consumers new products. With the emergence of wearable technology, such as smart watches, Google Glass type devices and customizable phones, Apple will be able to present these as must have items to a user base that embraces the new, hip and cool. If Apple plays their cards right, this acquisition will segue into a very profitable product and services run and place even more distance between itself and its competitors in not only the smart phone battle, but also the music services and tablet market as well as the coming wearable war.

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