It Cost 14 Dollars to Make A Dre’s Beats HeadPhone While They Sell It for 200 Dollars & Over

This is pretty cheeky and somewhat exploitative—because the profit margin is too large. But if you have a generation of people who care so much about brand names and are ready to throw cash at it, this is what we are left with.

Hip-Hop star-Dr Dre became a billionaire last year when he sold his Beats’ company  to Apple during a record-setting deal that included about $2.6 billion in cash and approximately $400 million in stock.

While Beats is known for its high price tag, Headphone designers estimate ‘the cost of making a fancy headset is as low as $14’, the New York Times reported.  With such a low estimate cost, the least expensive pair of Beats headphones that is listed on the company’s website costs $199.99 and the most expensive pair retails for $699.99.

Now, you can see the profit margin—which explains why Dr. Dre is a billionaire and why Apple went straight into buying the company.

Despite the high price tag, Beats controlled 27 per cent of the $1.8 billion headphone market in 2014—meaning, people are ready to spend on these headphones no matter what.

Of course the quality is great but it is surely not worth the amount to some of us—and now that we even have an estimate cost, we wouldn’t be going near it…