If it were told to you that the high priced Beats headphones do not even cost the manufacturers half the amount that you pay. Well, the scenario is much clear owing to the recently conducted breakdown of a Beats headphone by an engineer, Avery Louie.
The breakdown was conducted with a Beats headphone, which was launched at a price of $200 in the year 2013. The breakdown suggests that the headphone cost only $18 to the manufacturers, indicating the incredibly high profit margin that Beats keeps.
The breakdown conducted by Mr. Louie has put through one interesting fact about a Beats headphone. All of us will accept the fact that the headphones are tough and has an aura of solid pack up around it. But all of it is just due to four metallic pieces placed inside the headphone to make it feel heavy and something that will last long. The good thing is that the headphones do last long for most of the users.
Now, you might just ask that if it takes just $18 to make a beats headphone, then why does Beats price the headphones at such a high range. Well, the answer lies in everything else that you see about Beats. The three major costs that remain hidden from the customers are the marketing costs, the cost of research and development for any headphone and most importantly the cost of the licenses of the technologies used for manufacturing the headphones.
There is yet another important cost involved but it varies from product to product. The endorsements that the manufacturer does for its products, comes from the money that you are paying for the classy looking Beats Headphones. Well, now it is completely up to you whether you go for the Beats headphones priced at amounts way above their manufacturing costs or change your choice![ Source ]