Tim Cook’s Memo to Employees on Beats Acquisition

Tim Cook:

The Beats Music team will report to Eddy. The teams will be getting to know each other better in the weeks ahead, and we are very excited about the possibilities for the future.

Beats Electronics has become the brand of choice for headphones and speakers in both the music and sports world, just five years after its launch. They are among the most popular and highest-rated third-party products sold today in Apple’s retail and online stores. We see an incredible opportunity to bring Apple’s legendary design and engineering capabilities to these popular products under Phil’s leadership.

Not sure why anyone is surprised by this arrangement. Cue has long run Apple’s entertainment/iTunes stuff, and that’s where Beats Music clearly fits. As for the hardware reporting to Phil Schiller, that’s a little less obvious, but makes sense: what Beats needs as an Apple subsidiary is product marketing, a replacement for Ammunition, the firm that previously handled this for Beats.

The weirdest part of this whole thing to me is the idea of Apple acting as a parent company to an independent subsidiary brand. But with Beats Music that might make sense: Cook told the Financial Times’s Tim Bradshaw today that Beats Music will remain available for Android and Windows.

★ Wednesday, 28 May 2014