Apple makes a decent profit on its iPhone and iPad, although it would appear that Beats Audio, which Apple owns makes an even larger profit on its range of headphones.
Avery Louie recently tore down some Beats Solo HD headphones and discovered that they cost beats Audio just $18 to make, the headphone are sold for around $200 a pair.
The $18 that it costs Beats to make the headphones, it doesn’t take into account things like packaging, marketing costs and more.
Also discovered in the tear down of the Beats Solo HD headphones where four pieces of metal which apparently are used to give the headphones extra weight, these four pieces of metal have not other function, apart from adding extra weight to make the headphones feel heavier and more expensive.
Source Avery Louie, Cult of Mac, Ubergizmo
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