In news that probably surprises no one, it has been reported that Beats By Dre are extremely cheap to make. Estimates of the headphone's production cost are around $14 per set. This isn't so bad until you consider the fact that they generally sell for several hundreds of dollars.
Mark-ups aren't anything new. It is capitalism, after all. Unfortunately for Beats, however, its reputation may suffer as a result. TIMES didn't have anything nice to say, for example.
Regardless of how they actually sound, Beats has managed to hold to over a quarter of the headphone market. Shout out to celebrity endorsement!