Apple is set to acquire Beats Electronics in a US$3.2 billion deal to beef up its music services and take on the music streaming industry with the addition of Beats Music.

While Beats founders Andre "Dr. Dre" Young and music producer Jimmy Iovine have used their music connections to lure in record labels, Apple's music streaming service iTunes Radio has failed to gain traction in the same industry, according to New Yorker.

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Peter Lauria of Buzzfeed said one of the possible reasons for the purchase is that Apple wants to acquire Iovine, who has every quality in a founder that Apple chief Tim Cook does not have. Iovine, who was Steve Jobs' friend, is known for being loud, spontaneous, and dynamic.

Another reason for the deal could be Apple's desire to use its loads of cash to acquire a steady source of reliable revenue and profits through Beats' accessories. In addition to the headphones business, Beats also markets speakers which Apple could use to tap into the fast-growing home-audio market.

Time Magazine presents a different angle in the purchase. According to the magazine, Apple may have found Beats' music streaming service to be the most attractive part of the acquisition. While Apple has succeeded in etching a space in digital music through the iPod and iTunes, the firm has not yet found a way to take on music streaming giant Spotify.

According to Time, Apple entered the music streaming sector late, and the iTunes was only designed for the purchase of individual sound tracks and not for streaming music. The magazine also said Tim Cook was unable to anticipate the rise of the music streaming business.

Furthermore, Apple has not been able to launch a new line of products since the 2010 release of the iPad. Although new improvements to the iPad, iPhone, and Mac computer have been launched, the company's next innovation is yet to be seen.

Time guessed that Apple's acquisition of Beats might be centered on its interest in the booming "wearable computing" sector. Beats' flagship product is the high-bass headphone, and Apple might be able to integrate this product into its own wearable computing system.

This merger could give rise to Internet connected headphones and challenge Facebook, Google and other firms that are investing in smart glasses and watches.