$400 for headphones? Yes! We’re talking about Beats by Dr. Dre. Today we see those headphones everywhere but how did they become so popular? Beats electronics is actually a very young company which is founded in 2006 and with a rapid growth it became a mainstream brand. By selling around 15-20 millions of products each year, now the company’s market share in U.S. is 60%. Also it is expected that the company is going to hit 1.4B dollars of revenue by the end of this year. A common thought is their products are overpriced, however by their business strategy with the support of many celebrities they manage to sell more and more. As a customer of Beats headphones, I think that the designs of Beats headphones are very simple but also classy. Especially the quality of the sound is amazing. HTC Corporation, a well known company that produces smart handheld devices, started to work with Beats and produce cell phones with Beats in order to improve its reputation. Last month Beats ended its partnership with HTC and bought its 25% stake back. Beats is now preparing to buy one of its biggest old partners, HTC mobile. Now people are curious. What will be the consequences of this purchase?

Sources:

http://www.fastcompany.com/3015051/major-beats-beats-electronics-may-be-on-track-to-hit-14b-in-2013-revenue

http://www.theverge.com/2013/9/27/4776318/beats-ends-htc-partnership-buys-back-stake

http://www.fastcompany.com/3015937/fast-feed/dr-dres-beats-may-buy-out-its-unhappy-htc-partner

http://www.beatsbydre.com/aboutus