Why is Apple paying $3bn for Beats Electronics?

Some analysts are 'baffled' by Apple's purchase, but others say it may be their shrewdest move yet

Beats headphones
(Image credit: ROBYN BECK/AFP/Getty Images)

After weeks of speculation, Apple has confirmed that it will buy headphone maker Beats Electronics and its associated music-streaming service, leaving many analysts "baffled" by the move.

The company, founded by music producer Jimmy Iovine and hip-hop star Dr Dre, will be bought for a total of $3bn (£1.8bn) – well over the £2bn price tag many had estimated.

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