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

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.

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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.