Getting people who don’t care about how their music sounds that much and who don’t work with audio to seriously consider buying $300 headphones, that’s the achievement.
Those people used to either use the headphones that came with their devices, or they bought some cheap headphones (way under $100, probably even way under $50). Beats managed to attract those people to their products and managed to sell them to them for substantially more than they were previously ready to spend on headphones.
That’s what’s meant when people talk about Beats creating a new market. Buying expensive headphones just wasn’t a mainstream thing before Beats.
Honestly, I don’t even have much of a problem with that. People spend more money on better headphones. Sure, they spend too much for merely average headphones, but those are already better than anything they had before and once they buy into them I think it becomes way easier to convince them to try other headphones. Who cares if they spend too much?
Apple definitely bought the brand, not the headphone tech. Otherwise with such a cash stash they would have bought any of Beyerdynamic, Grado, Sennheiser, or the newer entries to headphones like Marshall (the Major is so-so but the Monitor is awesome)
While I'm still such a fan of sound quality that I will continue purchasing terrible-looking headphones, I can't deny that Beats are sexy as hell.
Consumers, right? :)