About eight and a half years ago, Apple made its largest acquisition in company history buying Beats Electronics for $3 billion. In the years since, Beats assets have been important leading to Beats Music being rechristened Apple Music and an increased focus on audio quality making what was once a liability for Apple a strength. Are they doing enough with the brand? Let’s take a look.
Beats is different from Apple
I’ve heard the opinion that Beats is just a duplication of Apple’s own AirPods. This is categorically not true and shows a lack of knowledge of Beats as its own company. Beats dating back to its founding by ‘Rapper Dr. Dre and music producer Jimmy Iovine has strong ties to hip-hop and pop culture. Because of this it also has ties to other areas where minorities flourish such as professional sports and influencer culture.
This is quite complementary to Apple’s own audience and gives the Beats brand room to expand where the Apple brand doesn’t have the reach. That said, Beats has not reached that potential under Apple, essentially becoming a sporty mirror to the AirPods line and dropping its speakers altogether. Beats was even shown to have been shown as a part of Apple’s Airplay 2 strategy when the multi-room standard was announced, but that never came to fruition. It’s time for Apple to take another look at Beats.
Here are a couple of ways that Apple could expand the brand.
Headphones
I’m not going to hold back, Beats’ entire lineup is out of date. We know that an updated Studio Buds+ is imminent thanks to leaks and a premature Amazon listing. This should bring the entry-level Beats true wireless buds roughly in line with their AirPods cousins. A second generation of the Beats Fit Pro, is a mystery. Instead of releasing an updated model with the same H2 as the AirPods Pro 2, Apple released three new colors making the Fit Pro available now in 10 different colors including the three that were released in partnership with Kim Kardashian. Based on the timing between the original AirPods Pro and the Beats Fit Pro, one would expect these to be updated in 2024.
When it comes to Apple’s on and over-ear headphone lineup, it’s a mess. The Beats Solo Pro, Apple’s only H1 headphones other than the AirPods Max were discontinued in 2021, The Solo 3 and Studio 3 are both quite old using the OG W1 chip. Combined with the AirPods Max, the Solo and Studio lines could use an H2 update with USB-C charging and audio.
Speakers and Home Theater
Beats previously made the Pill portable and Beatbox speakers. Those names could make a return. A new Beats Pill can take Apple into an arena where it has not been, a portable Bluetooth speaker based on the H2 chip with the same iCloud automatic device switching as AirPods.
Likewise, Apple could use the Beatbox branding on a new series of large, multi-room speakers. These could be the direct competitor to Sonos, especially in the home theater space. Like with headphones, Apple pushes boundaries with the HomePods line while Beats takes on more traditional segments.
Fitness and Electronics
Wearables and electronics are where Beats could see their greatest possibility for growth leaning on their relationship with athletes. Beats could take a similar position to Garmin and introduce accessories for indoor and outdoor training, filling in holes in the Apple fitness ecosystem that third parties have not entirely filled. More accurate, chest-based sensors could also be introduced into the brand as well as well.
Likewise, Beats could be a place for sports-based alternatives for Apple’s devices. Polymers don’t fit Apple’s brand, but the high-end plastics are right at home with Beats. This could allow Apple to experiment and give Android and Google Wear users a rugged option similar to the Nokia XR20 that is a little different than what Apple is offering with the iPhone. Like my proposals for an Apple purchase of Razer, unlike Apple itself, Beats doesn’t have to be for everyone. They can piggyback on Apple’s innovations while maintaining their own identity. A Beats Phone and Beats Watch would definitely make a splash.
Closing
Beats was once Apple’s biggest purchase and could be its ticket to expansion and revenue. Apple is no longer a small niche brand. It’s one of the biggest brands on the planet. Maybe it's time for it to explore the niche again through Beats.
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