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NetEase Technology News, according to foreign media reports, after it was revealed that Apple would buy headphone maker Beats Electronics (hereinafter referred to as Beats) for $3.2 billion, investors did not seem to be optimistic about the deal. Apple shares fell about 1% on Friday morning, that is, Apple lost more than $5 billion in market value.

In fact, media reports also expressed concern about the deal. Hannah Karp of the Wall Street Journal said Apple's acquisition of Beats for its music streaming service was reminiscent of the failures of some companies in the industry in the data music business. Karp said that while the music streaming subscription service, led by Spotify AB of Sweden, has grown rapidly in recent years and is changing the way consumers consume music, Apple has been on the sidelines, earning more than $1 billion in global music streaming last year. As record companies step up investment in this new service, Apple has stuck to its business model: music downloads.

Karp also said that some industry executives were surprised by Apple's early reluctance to enter the music streaming subscription service. Fifteen years ago, music fans began sharing files through Napster and other music online platforms, and Apple's decision to stay on the sidelines is reminiscent of the time when record companies blocked music downloads. Instead of joining forces to develop their own digital music market, record companies have spent years focusing on tort prosecutions against file sharers. By the time Apple launched the iTunes, record sales had begun to plummet. Record sales are down 40% from their peak in 2000.