Dr Dre Headphones Cost $18 To Make

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Beats by Dr Dre feat. Azealia Banks Beats by Dr Dre feat. Azealia Banks
Headphone designers estimate the cost of making Dr Dre headphones is as low as AUD $18. They sell for around AUD $200.

The mind snapping, thanks-for-playing markup of around 800% was revealed when the New York Times reported on Apple's acquisition intentions towards, and subsequent purchase of, Dr Dre's company Beats Electronic.

Accounting for the difference between cost of manufacture and retail price, the perceived value in the minds of consumers had been ramped up with high-profile advertising including endorsement from artists such as Azealia Banks.

The large statement 'phones were starkly contrasted to Apple's tiny bud 'phones.

At the time of the acqisition — May 2014 — Beats' estimated annual sales were estimated at a staggering US $2 billion.

The US $3 billion deal also included Beats Music — a subscription streaming service in competition with Spotify and Pandora.


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