The Beats Acqusition is About Demographics
Everyone talks about beats headphones, the music service, the profit margin and everything else. While I don't know if it is good or bad, I don't believe that is the whole story.
I feel Apple buying beats is about trying to get a better handle on a demographic that tends not to buy their products. Apple could have easily sold headphones, started a curated streaming service. Yes it is nice to already buy a popular brand, but is Apple really playing down it's brand that much?
I think Apple bought Beats because it has a strong appeal to the black or African-American demographic, which for some reason tends to not really use Apple products.
Sure some may tend to agree, but in the end I think this acquisition is about capturing a market demographic that the Apple appeal has never really caught on to.
The reason why that demographic is so important is because by a significant degree they in summary spend more money and are considerd to influence mainstream american culture by a large degree. With all of this...African Americans prefer Android to iOS 73% to 27% in the US. This is based on Neilson's report.
Update: I should have done this before but many people are claiming "ignorance" and choosing to ignore the research I am referencing in the comment section. Here is the report http://www.nielsen.com/us/en/newswire/2013/african-american-consumers-are-more-relevant-than-ever.html
I suggest before you simply just call me "ignorant" read the report, and lets debate that. The bubble individual people live in and form their conclusions by will never represent the general landscape.