Beats Electronics
Beats Electronics LLC (also known as Beats by Dr. Dre, or simply Beats by Dre) is an American consumer audio products manufacturer headquartered in Culver City, California.[1][2] The company was founded in 2006 by music producer Dr. Dre and record company executive Jimmy Iovine. Since 2014, it has been an Apple subsidiary.
Company type
The subsidiary's product line is primarily focused on headphones and speakers. The company's original product line was manufactured in partnership with the AV equipment company Monster Cable Products. Following the end of its contract with the company, Beats took further development of its products in-house. In 2014, the company expanded into the online music market with the launch of a subscription-based streaming service, Beats Music.
In 2011, NPD Group reported that Beats' market share was 64% in the U.S. for headphones priced higher than $100, and the brand was valued at $1 billion in September 2013.[3][4]
For a period, the company was majority-owned by Taiwanese smartphone maker HTC. The company reduced its stake to 25% in 2012, and sold its remaining stake back to the company in 2013. Concurrently, Carlyle Group replaced HTC as a minority shareholder, alongside Dr. Dre and Iovine in late 2013. On August 1, 2014, Apple acquired Beats for $3 billion in a cash and stock deal, the largest acquisition in Apple's history.
Critical reception[edit]
Some critics claim that Beats products emphasize appearance over quality and function, arguing that more durable and better-sounding products are available for the same price or lower.[75][76] Tests done on an HTC smartphone with Beats Audio indicated that the audio technology is a combination of audio equalization that boosts the low (bass) and high ends of the audio range, audio compression, and audio amplification.[77] In 2015, Beats president Luke Wood disagreed with accusations that Beats' products were "bass heavy", citing that their products were not for reference but rather for playback.[78]
In April 2014, German consumer test organisation Stiftung Warentest tested 20 headphone models, including the product Beats by Dr. Dre Solo HD. In the end, it came in third to last. The comparatively high price, the merely satisfactory sound quality and the poor performance in the drop test were criticised.[79]
