Tag Archives: aapl

AT&T Says Beats Deal Still On After Apple Purchase

AT&T (T) says its relationship with Beats Music will stay the same in the wake of Apple’s (AAPL) purchase of Beats Electronics and the subscription streaming service for $3 billion. Apple announced Wednesday that it will acquire Beats Electronics, which sells headphones and speakers, and the Beats Music streaming service, confirming speculation. Beats Music’s competitors include Spotify, Rdio and, to a lesser degree, digital radio service Pandora

Apple gets its groove on with $3 billion Beats deal

Apple late Wednesday confirmed that it is buying high-end headphone maker Beats Electronics and subscription streaming-music service Beats Music for $3 billion, sealing its largest acquisition ever. Apple (AAPL) executives confirmed the deal in an interview with the New York Times, three weeks after news of the acquisition first leaked out. It later issued a press release announcing the purchase. As part of the acquisition, Beats co-founders Jimmy Iovine and Andre “Dr. Dre” Young will join Apple. Their roles weren’t disclosed in the press release, but the New York Times said they will work under Eddy Cue, Apple’s senior vice president of Internet software and services. Apple is paying for the deal in cash with $2.6 billion upfront and $400 million that will vest over time. Apple did not say if it is buying Beats with domestic or overseas cash. Beats established tax residency in Ireland, which has lower corporate taxes, in 2012.  

Intel could lose big if Apple switches to ARM PC chips

If Apple switches to ARM-based processors from Intel chips for its personal computers, ARM stands to gain a little but Intel would lose a lot, says FBR Capital Markets analyst Christopher Rolland. Media reports by CNet and others claim that Apple (AAPL) is developing an ARM (ARMH) processor to replace Intel (INTC) x86 chips for some or all of the company’s MacBook and iMac product lines. Rolland estimates that ARM would get a royalty benefit of just $7 million a year in his 2017 base-case scenario if Apple makes the switch. Meanwhile, the switch would cost Intel about $740 million in 2017 revenue, or slightly more than 2% of Intel’s total PC processor revenue. This scenario assumes that ARM captures one-third of Apple’s PC units.