The potential $3.2 billion deal between Apple and Beats International—the headphone company founded by West Coast rapper Dr. Dre—fixes a major problem at the tech giant, CNBC's Jim Cramer said on Friday.
Apple seems to have lost its cool in recent years, and Beats gives it a much-needed edge in that department, Cramer said. What's more, the potential deal provides an offensive boost to Apple 's iTunes as it loses users to growing competition from streaming services such as Spotify and Pandora, he added.
"It's not a dumb deal, because they have so much money," Cramer said on "Squawk on the Street." "It's a rounding error. And by the way, they need to be cool. One of the problems that Apple has is that it's not cool. It used to be. You always expected that. [Beats] are the definition of that."