Beats by Dre Headphones Only Cost $14 to Manufacture




/ 5 years ago

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Apple-owned Beats Electronics, founded in 2006 by hip-hop producer Dr. Dre and record label owner Jimmy Iovine, is worth over $3.2 billion, and A new report reveals concern regarding its profit margins.

The big concern revolves around the price of a pair of Dr. Dre’s Beats by Dre headphones, a product that costs upwards of $450, which actually costs approximately $14 to manufacture.

The quality of Beats headphones has been in question since before this revelation, with TIME Magazine naming the brand as the second-worst headphone manufacturer in the marketplace last month.

Despite the questionable sound and build quality, Beats by Dre dominates the headphone industry, boasting a 27% market share and profits of £1.8 billion last year.

Source: All HipHop


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