May 13, 2016 — by: Mark Reschke

Beats_wireless_earbudsSince Apple acquired Dr. Dre’s Beats headphone business back in May of 2014, the two brands have been content to stay separate entities — in branding and function — but that should all change with the arrival of iPhone 7.

To put it mildly, recent reports of Apple’s forthcoming iPhone 7 feature set have been gloomy, and anything to give iPhone 7 a boost in the flat high-end smartphone market should be a priority for Apple. Make no mistake, iPhone is the make or break product for Apple, and Beats is an accessory player. If cannibalizing sales of Beats is requires to sell millions of additional iPhones, it should be done – without question. 

Apple should pull out all the stops, shipping every version of iPhone 7 with wireless beats inner ear earpods. Each iPhone color shipping with a matching color of wireless beats earpods. While this would certainly put a dent into Beats aftermarket sales, the costs of manufacturing wired Apple branded earpods vs wireless Beats versions is likely less than $5 at volume quantity. 

Shipping iPhone 7 with no headphone jack and wireless Beats earpods, slightly thinner chassis, A10 processor, with dual-camera technology and updated OS, gives the new iPhone the best chance of success, which could very well best iPhone 6S and 6S Plus sales volumes (topping 6 sales is virtually impossible at this time). In addition Apple’s brand can be augmented by looking innovative and cutting edge, making all other smart phone manufacturers follow in Apple’s footsteps again. This helps propel Apple to the top slot — as the leader — in consumers’ minds.

What is more important to Apple? Selling a few million more after market Beats headphones, or selling 15 million more iPhone 7’s? Anything Apple can do to drive increased value and thus sales into iPhone 7 should be done. Period.

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1 Comment

  1. James ~ May. 16, 2016 @ 10:14 am

    Pffft! The last thing I would want with a new iPhone is Beats. I own a nice LG Bluetooth unit and it does just fine. Beats are unsubtle, tubby and just plain bad. They really get in the way of the music. If your tastes wonder the least bit to Jazz, Classical, Folk, Soundtrack or anything that diverges the least bit from hip-hop or rap Beats will just bludgeon that music into a bleeding mess. It would be just another "use as a spare or in desperation" set when the main buds are charging, broken or lost. It would be the same thing as the corded white buds that come with the 6S now but with a Beats label. For me it would be just another reason to wait it out for the iPhone 8. It would be better for Apple to take the Beats product but re-engineer it for a more neutral sound space and rebrand it as Apple with Beats technology or some such. Actual Beats products are too much of a one-trick pony. #

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