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They are probably building it both as a standalone speaker and iOS/Apple Watch/Mac integrated, and yeah, I don't doubt it'll be $399+ for the speaker. They're going to make it with the Beats audio stuff because they know people will want to use it for listening to stuff, especially music.
And maybe using your iPhone as a second device isn't 100% great. But when it can talk to your Apple TV, your existing AirPlay/Bluetooth speakers, HomeKit, your apps, car with CarPlay, etc without the separate device, and you already have a dock you stick it in, then a lot of people would rather that.
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