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The big problem with Apple's reported $3.2 billion Beats Audio acquisition

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Apple is reportedly on the verge of forking over a mammoth $3.2 billion for hip hop impresario and production legend Dr Dre's Beats Audio, turning Dre into a billionaire and ensuring that nobody will ever forget about him again.

Now, $3.2 billion is a drop in the bucket for Apple, which is sitting on a pile of cash of up to $150 billion. And Apple would get a lot in this deal — namely, Beats' headphone business and its audio streaming service.

Still, as Business Insider's Jay Yarow points out, this is a strange acquisition for Apple, a firm that prides itself on its perfectionism. Although Beats sells a lot of headphones, the headphones are widely panned by critics for their relatively poor sound quality.

And Beats Audio's streaming service is far less popular than market leaders Spotify and Rdio. Many will wonder exactly why Apple chose Beats when they could probably have bought a less trendy competitor for much less.