Beats Solo headphones made billions of dollars focusing on a market strategy that included endorsements by several musicians, athletes, and celebrities. However, a recent experiment discovered extra metal weights and $18 worth of materials inside, revealing that high quality was not a top priority.
Avery Louie, a prototype engineer, dissected the (discontinued) original Beats by Dre "Solo" headphones, to examine the contents of the expensive headphones.
What he found was shocking. Louie discovered that around one-third of the headphones' weight was created by four metal pieces whose sole purpose was to add weight, according to News.
The company's goal of including the metal parts in the product design seems to have been creating the impression that the headset is durable and premium. It justified the high price tag.
There were more shockers. During is break-down of the Beats headphones Louie discovered that snaps and glue were used to attach certain parts. Metal screws are much sturdier.
The engineer further learned that the interior parts were almost entirely made of "injection molded plastic." It is dirt-cheap when purchased in bulk.
Louie's next step was to do the math. He discovered that the cost of the Solo headphones, excluding labor, shipping, marketing, etc. was $18. The retail price of Beats Solo headphones during its 2013 launch was $200, according to UberGizmo. That is a 91 percent mark-up.
Despite the headsets' cheap materials, millions of units were sold. Louie's conclusion was that this was due to its sleek design and the branding by Dr. Dre and Jimmy Iovine.
However, Beats' Solo 2 headphones are manufactured in a different factory than the original version was. The overall quality is much higher.
Beats Electronics is a division of Apple Inc., and was co-founded in 2006 by rapper and hip-hop producer Dr. Dre, and record producer Iovine. It earned $1.5 billion in revenue in 2013.