Apple agrees to buy Beats Electronics for US$3b

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Apple announced plans on Wednesday to buy Beats Music and Beats Electronics in a deal worth US$3 billion that gives the US tech giant more clout in the hotly contested music sector.

The move is expected to help Apple, which was a pioneer in online music, ramp up its efforts to counter the successful models of streaming services like Pandora, Spotify and others.

Apple's largest acquisition ever, the deal for the maker of high-end audio equipment and streaming music service calls for Beats co-founders Dr Dre and Jimmy Iovine to join the California company.

Bringing Beats into the Apple fold will offer opportunities to weave iTunes Radio service into more devices, and even spread the App Store for mini programs to other products, according to analysts.

The deal represents a shift in strategy for Apple, which is known for developing its own products in-house and making only modest acquisitions.

Since launching five years ago, Beats has become a popular brand for audio equipment and has attracted the likes of Lady Gaga, Lil Wayne and Nicki Minaj, who have designed their own customized Beats headphones and speakers.

Fashion designers and street artists such as Alexander Wang, Futura and Snarkitecture have collaborated on some products.

The deal, which has been rumoured for weeks, is subject to regulatory approvals and is expected to be completed later this year, Apple said.