AppleInsider Staff
Speaking at the Code Conference on Wednesday, Apple SVP of Internet Software and Services Eddy Cue and Beats cofounder Jimmy Iovine offered a peek behind the curtain of Apple's $3 billion deal covering everything from subscription music services to future hardware.
In a wide-ranging discussion with Re/code's Walt Mossberg and Kara Swisher, Cue and Iovine detailed the reasoning behind Apple's purchase of Beats, the company's largest acquisition ever. Topics moved from Hollywood's rocky relationship with Silicon Valley, why the television experience is so poor and what role the audio company will play in Apple's future, among others.
As discussed earlier in the day, Apple seems to have been more interested in Beats Music, Beats' subscription streaming service, than headphone and speaker hardware. Iovine revealed that Beats Music gained 250,000 subscribers in three months of operation. The number would have been higher if Beats had rolled in in-app purchasing from the start, he said.
Cue also let loose some statistics of his own, saying Apple sold its 35 billionth songs through iTunes last week and currently has around 40 million users listening to iTunes Radio around the world. Apple plans to keep Beats Music a separate brand, but has been thinking about subscription-based streaming for a long time, he said.
For those wondering about the fate of Beats Music on other platforms like Android and Windows Phone, Apple plans to keep those assets alive for the foreseeable future. Since Apple normally closes off access to other operating system after buying out an app or service, the unusual move to keep Beats Music alive may be a bid to appease regulatory agencies that have yet to sign off on Apple's acquisition.
On the hardware side, Cue was tight-lipped about future products, but did compliment Beats on its headphone business. Iovine was less positive when talking about earbuds that come with phones, saying smartphone makers include them to make sure the sound works. The music mogul went on to say it's not the responsibility of companies like Apple to create these traditionally aftermarket devices.
Cue defended the EarPods, which come free with every iPhone purchase, saying they offer industry-leading out-of-the-box sound, but admitted that making "incredible sound" costs more money.
Interestingly, when Mossberg asked about Apple's foray into speakers with the now-dead iPod HiFi, Cue said the device wasn't a good idea at the time — but it is now.
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"I have been working with Tim since 1997. We started the online store together. Cook is extremely thorough, he has tremendous vision. He cares tremendously about building great products. Looking at the executive team, the reason we are successful is because of our focus. We are not smart enough to do 100 great things. We want to do a few incredible things, and that hasn’t changed. We’re going to keep going down that path… Later this year, we’ve got the best product pipeline that I’ve seen in my 25 years at Apple” - Eddy Cue
Holy shit. Apple executives don't say these kinds of things lightly.
[quote name="Slurpy" url="/t/180188/eddy-cue-and-jimmy-iovine-go-in-depth-on-apples-beats-acquisition-and-future-plans#post_2541582"]"[COLOR=574A42]I have been working with Tim since 1997. We started the online store together. Cook is extremely thorough, he has tremendous vision. He cares tremendously about building great products. Looking at the executive team, the reason we are successful is because of our focus. We are not smart enough to do 100 great things. We want to do a few incredible things, and that hasn’t changed. We’re going to keep going down that path…[B] Later this year, we’ve got the best product pipeline that I’ve seen in my 25 years at Apple”[/B] - Eddy Cue[/COLOR] [COLOR=574A42]Holy shit. Am excite. [/COLOR] [/quote] Cue certainly did raise the bar tonight. But **** Iovine for ripping Apple's headphones on stage. He said Apple only makes headphones to test that the audio on the phone is working right. A bit rich coming from someone who makes headphones that a lot of people feel are overpriced crap. I hope if he and Dre start to interfere in product design that Ive tells them to **** off.
I'll be curious to see if CarPlay was a factor in any of this.
^
[quote name="Rogifan" url="/t/180188/eddy-cue-and-jimmy-iovine-go-in-depth-on-apples-beats-acquisition-and-future-plans#post_2541583"] Cue certainly did raise the bar tonight. But **** Iovine for ripping Apple's headphones on stage. He said Apple only makes headphones to test that the audio on the phone is working right. A bit rich coming from someone who makes headphones that a lot of people feel are overpriced crap. I hope if he and Dre start to interfere in product design that Ive tells them to **** off.[/quote] I agree, that was a low blow and lacking a bit of class. Not to mention that all things considered, Apples headphones sound pretty damn good for the price. Infinitely better than the old ones. Anyway don't lose sleep over this beats deal. Im not even into music, but I don't care as I know that Apple has many other things in the works and this is just a small piece of its business.