Apple’s Beats Electronics Unveils Solo2 Wireless Headset
Targeting the upcoming holiday season, Beats Electronics, a division of Apple Inc. (AAPL) has launched the Solo2 Wireless headset. Solo2 uses Bluetooth technology to connect to audio devices within a 30-feet radius and includes a built-in battery that lasts up to 12 hours with continuous wireless playback.
The headset, to be available later this month, is priced at $299.99 and comes in four colors — blue, black, white and red. Going by the press reports, the red Solo2 will be available via Verizon Wireless of Verizon Communications Inc. (VZ) through 2014. We believe Solo2 will register strong sales backed by Apple’s brand power despite the hefty price tag.
While Solo2 Wireless headset is being projected as a new package because of the wireless feature, wired versions of the product have been in the market since Jun 2014. This marks one of the key launches by Beats Electronics after its takeover by Apple in May for $3.0 billion.
Apple remains hopeful that the acquisition — its largest to-date — will remain profitable given Beats’ success in music streaming services. In terms of headphone business, Beats Electronics compliments Apple’s product portfolio with its bestselling headphone devices. According to the research firm NPD Group, the company continues to dominate the premium headphone business with a 60% market share in the U.S.
Further, we believe that Beats service will complement Apple’s ad-based music-streaming service iRadio offering an edge over Amazon.com’s (AMZN) Prime Music service and recently launched Music Key by Google’s (GOOGL) YouTube. Further, it will also develop into a steady recurring revenue stream for the iPhone maker over the long run.
Apple currently has a Zacks Rank #1 (Strong Buy).