This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple's Lust for Beats Audio Is All About Being Cool

Stocks in this article: AAPL

NEW YORK (TheStreet) -- The Beats Audio deal would give Apple  (AAPL) a significant advantage in the consumer electronics space. Beats Audio has become the de-facto brand of major music artists from Jay Z, Armin Van Buren, Pit Bull, and Avicii, which may be the only reason Tim Cook wants to buy the company.

Put another way: What's the difference between an iPhone, and a Samsung Galaxy S 5 (SSNLF)? Simple, one has Apple's signature logo,and the other doesn't. Sure, we could debate technological specs, to the day earth goes cold but realistically, what makes an Apple device better than a Samsung Galaxy?

Not a whole lot.

Even so, Apple charges a pretty premium for its products. How the heck do they get to do that? Hmm... good question let me put it this way. Usually, when I ask out a girl, I have to get their phone number. With an iPhone, I feel way more confident. But with my Samsung, I get thrown in with the "not-so-cool-people."

So, which phones make you feel more confident? *cough* iPhone.

Hell, even Bill Gates said he envied Steve Job's taste.

Some are frugal, and yeah that good old cliche "a penny saved is a penny earned." But kids these days just don't give a damn -- they'll pay top dollar just to look "good."

Which brings us back to Beats Audi. Apple appear to be keen on buying Beats to make sure the iPhone remains the coolest mobile phone on the market. Welcome to the world of licensing.

A Beats Audio deal also looks to be accretive, immediately adding to profits. But is Apple buying a really good headphone manufacturer? No, Apple wants the brand, and couldn't care less about the technology. In fact, I'm sure Apple could come up with a much better -speaker technology but it doesn't have the branding in place to attract consumers.

Beats Audio is the brand that many in the younger generationembrace. Their favorite artists, and their closest friends, all want a Beats Audio headphone over Sony (SNE), Apple, Bose or other recent entrants.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs