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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.

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