This is the key. I would add it isn't just a fashion company, it is a _premium_ fashion company. I did a quick look at Amazon [1], and the price points are fairly solid: $99 to $299 for over-the-ear headphones, and around $45 for the in-ear models.
I doubt Apple could get away with this level of mark-up if they entered the headphone space. They have a solid markup on their accessaries, but I doubt the margins are similar.
Taking a step back, I wonder what Angela Ahrendts [2] is going to do with this brand. Is the beats brand part of their iWatch strategy?
Maybe, but that is sort of like saying Phil Schiller is _just_ going to market them. I always remember this post from Daring Fireball about how integrated Apple is:
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This is the key. I would add it isn't just a fashion company, it is a _premium_ fashion company. I did a quick look at Amazon [1], and the price points are fairly solid: $99 to $299 for over-the-ear headphones, and around $45 for the in-ear models.
I doubt Apple could get away with this level of mark-up if they entered the headphone space. They have a solid markup on their accessaries, but I doubt the margins are similar.
Taking a step back, I wonder what Angela Ahrendts [2] is going to do with this brand. Is the beats brand part of their iWatch strategy?
[1] http://www.amazon.com/s/ref=nb_sb_ss_i_0_5?url=search-alias%...
[2] http://www.apple.com/pr/bios/angela-ahrendts.html
Ahrendts will be selling its products, considering that she's managing retail operations.
Paul Deneve[1] (ex-YSL CEO) might do something with it.
[1] http://www.businessweek.com/articles/2013-07-03/apple-hires-...
Maybe, but that is sort of like saying Phil Schiller is _just_ going to market them. I always remember this post from Daring Fireball about how integrated Apple is:
http://daringfireball.net/linked/2012/10/29/whither-phil
Those prices also include a huge margin. I read that a pair at $200 are estimated to cost $14 to make.