Misc How Much Do Beats Cost?

How Much Do Beats Cost?

Do you think you have been smoothly defrauded of $500 for an under $ 14 gadget? There is a fine chance that your doubts are true. The gadget we are referring to is none other than Beats headphones.  If you have bought your pair and are thinking maybe you rushed a little too soon to…


Aug 17, 2015 11:17 am

by admin

Do you think you have been smoothly defrauded of $500 for an under $ 14 gadget? There is a fine chance that your doubts are true. The gadget we are referring to is none other than Beats headphones.  If you have bought your pair and are thinking maybe you rushed a little too soon to buy it, then you couldn’t be truer. Hence, if you are motivated to ask, how much do Beats cost, we will help you seek an answer to your question.  In this article, you will know some interesting and lesser known facts about the Beats Electronics.

So, now that you discovered your headphones are cheaper to manufacture than paying for a haircut, your possible impressions are let’s say… Regrets?

So, here is your quick answer to how much do Beats cost. The price bracket for the “Beats” products varies from $199 to $699. Still finding the price ridiculous for a product that is sold without a bargain?

Audio experts, who autopsied the headphones to decode the cost, have found that the electronic parts used in the device exceed no more than $14 to manufacture. You would be paying no less than $199 for the cheapest pair of Beats.


Now that prompts you to ask, what makes Beats expensive? For that, you will have to read the rest of the article. But, before we tell you the motivation factor for the beasty pricing of Beats, you will need to know the brief history of Beats. The Beats Electronics is a brand that was spawned by celebrities Dr. Dre and Jimmy Lovine in 2008. The motivation for starting up the present day Billion dollar headphone industry was the music piracy and subpar audio systems. Beats Electronics partnered with Monster Cable (audio component makers) to conjure the most expensive headphones in the world. Dr. Dre consulted many musicians like will.i.am, M.I.A and Pharell Williams to understand the taste and quality of music prior to building his brand. The company in the present day focuses on the in-house development of their products.

The brand was made famous via endorsements by many hip hop artists. They were being used in several music videos and partnering with many celebs to make a cobranded product.  In 2012, Beats owned 64% of shares in the headphone industry.  And in 2013, it was worth a mammoth $1.5 billion in the global market.

In 2014, Beats Electronics was acquired by the Apple Inc. The acquisition was one of the biggest in the music industry. Apple acquired ownership of Beats in exchange of $3 billion. The deal was made in cash and partly in stock. Tim Cook told the media the Apple was committed to delivering high-quality products to their buyers, and the acquisition is a positive reflection of the company’s future. To Apple, acquisition of Beats means undertaking a brand that is fueled by a cult following.

But, what is the magic ingredient that drives the sales of these expensive headphones? While most brands that make headphones focused on product research, manufacture, promotion and sales; Beats carved a unique trail. They focused on the in-house development, and the rest was power-packed endorsements. The brand was promoted in every possible way, and it was sufficient to drive remarkable sales.

Perhaps, a good chunk of the price you pay for a pair of headphones are consumed by the endorsements and advertising. But, does premium price mean premium quality too?  Although, the beats products are pricey, some are critical to the sound quality and even claim that the lavish branding as over exemplified advertising gimmick.  Some product rating websites says Beats stand second to worst of all headphone varieties in terms of quality. Ironically, it is still miles ahead of the next contender in the headphone industry. Beats Electronics are worth 1.8 billion in the headphone market. Now, that isn’t luck by chance.

If Beats are cheap to make, and it’s an open secret, then why do celebs flaunt the Big B? The simple answer would be brand awareness and by slapping the Dr. Dre approval, anything that is headphone will instantly be an item of value. If you observed at how the brand works you will know how the reputation drives sales. For instance, if a celebrity were to flaunt the Beats product, it quickly draws the attention of the fans. The fans would then be the potential buyers. In this manner, they earn buyers every time a celebrity endorses Beats products.

Acquisition Facts

When Apple set to acquire the Beats, many raised eyebrows asking Why Apple would risk an acquisition of a young brand that is founded in 2008. Beats Electronics made an identity in just seven years of debuting in the headphone market. When Beats marketed their product, they exploited the untapped market that was mostly undominated by other sellers or brands.  In the heat of piracy, Beats released an online music streaming service called as Beats Music (similar to Spotify).

Is It The Headphones Or The Brand That Make The Difference?

As a standalone brand, Beats Electronics was selling headphones like hot cakes. Having made $1.8 billion by a young company is a sheer indication of the quality and top notch demand for the product. Dr. Dre has demonstrated the ability to be a rapper-businessman to a marketing prodigy.  After keenly observing the company’s money-spinning potential, Apple Inc. wanted to keep the profits by acquiring Beats.

Is It Just Beats Music?

Prior to the acquisition, Apple was predominantly a big player in the Music delivery arena. The competition was stiff with many big players contesting to earn the steak (buyers) to choose their products. After the emergence of Spotify, Apple fell a few slots behind, and the idea was mooted to bring the old charm quickly. Hence, Beats Music was their ticket out. Maybe, we can expect to see an iOS–exclusive service sooner.

Since Apple is known to add a twist to their technology with innovation, you can expect to see some possible interesting updates and products shortly.

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