Apple buys Beats Electronics – how the China Sourcing paid off

It has been a few years since Californian rapper and hip-hop producer Andre “Dr. Dre” Young established his own company, which produces headphones and speakers in China. This high-quality equipment became very popular among professionals and music lovers alike. The brand earned widespread recognition in the audio industry.

Apple buys Beats Electronics

Worth $300 pair of headphones is still among the most popular luxury item in China. Even though fake ones are flooding the market, clients still look for genuine ones. It can be said that the company managed to turn its customers into brand fanatics.

Apple Inc., a company with many die-hard fans, declared that it will purchase Beats Electronics for $3.2 billion. It is the largest deal in Apple’s history so far. It means it acquires the Beats headphones, speakers, and audio software.

We should take into consideration that Beats headphones and iPhones are both considered high-end products and are both manufactured in China. Getting good quality in China is easier than you think, and the manufacturing price still remains low. The only thing that’s high is the brand owner’s profit margin.