I never understood how they could make money on that deal. Those headphones were not built to last. I went through at least one pair a year back when I used them.

Maybe it was the sort of loss leader that's financed by the marketing department.

1. The cost from the factory in China couldn't be more than $5.00 on their priciest model.

2. They charge $9.00 return shipping, and I bet make a healthy profit?

3. They might break even, minus the goodwill, on Ibud replacements? (I don't know Apple products anymore. Excuse the nomenclature. Ibud sounds off.)