Apple to buy Beats Electronics – how the China Sourcing paid off

It has been six years since Californian rapper and hip-hop producer Andre “Dr. Dre” Young has established his own company which manufactured headphones. This high-quality equipment has become very popular among professionals and music lovers alike and the brand earned widespread recognition in the audio industry. It is worth mentioning though that this equipment is manufactured in China.

Apple Buys Beats

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

Now Apple Inc., an another company which has the large number of die-hard fans, has declared that it will purchase Beats Electronics for $3.2 bln. We should take into consideration that Beats headphones and iPhones are both considered high-end products and are both manufactured in China: getting a 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.

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