Not sure why anyone is surprised by this arrangement. Cue has long run Apple’s entertainment/iTunes stuff, and that’s where Beats Music clearly fits. As for the hardware reporting to Phil Schiller, that’s a little less obvious, but makes sense: what Beats needs as an Apple subsidiary is product marketing, a replacement for Ammunition, the firm that previously handled this for Beats.
The weirdest part of this whole thing to me is the idea of Apple acting as a parent company to an independent subsidiary brand. But with Beats Music that might make sense: Cook told the Financial Times’s Tim Bradshaw today that Beats Music will remain available for Android and Windows.
Original article: http://9to5mac.com/2014/05/28/tim-cooks-memo-to-employees-on-beats-buy-i-hope-you-are-as-excited-as-i-am-about-this-new-chapter-in-our-history/ .