I admit it. I was sure the Apple-Beats rumors were bogus. I just couldn't convince myself that it made any sense for Apple.
True the deal costs them nothing. With revenues over $1.4B per year Beats sold at a hair over 2x earnings. It was a bargain. (Hmm. Why so cheap?) Apple will get its money back in just a couple of years and after that it's all profit in a very high margin business. But this deal wasn't about money.
I'm increasingly convinced it was all about Jimmy Iovine. And not just his rolodex or deal making ability, but as front man. Every great rock and roll band has a front man. Apple lost its front man in 2011 and Tim Cook is at best a competent drummer with all the charisma of Phil Collins.
It seems to me Apple is looking for someone who can electrify the crowd, make the deals, and bring back the cool. I don't know enough about Iovine to know if he's the Man, but I'm betting Cook and company think he is.
We'll see Monday when Iovine makes his on-stage debut at WWDC.
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Again, this is all personal opinion and I don't know how much fighting power Blackberry has left.With the luke warm reception of Blackberry 10 devices last year, I just don't see what hardware advances they could do to stay competitive.
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