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

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

Apple to buy Beats Electronics

Worth $300 pair of headphones is still among the most popular items of luxury 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.

Now Apple Inc., a company that has a 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 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.