Beats by Dr. Dre as high-end headphones that make up almost 70 percent of the market. On its website, the top line Beats headphones retail for $400.
In China, counterfeit manufacturers offer the headphones for a wholesale price of $70. In an interview with CNN, a woman who runs a manufacturing plant that produces fake Beats headphones showed that she had sales to customers in Italy, the United States, Canada and Russia. One customer from the United Kingdom bought an order of fake Beats for $50,000 and flew the order back to the UK by jet, where he sold them as legitimate copies.
The price of $70 is for the highest-quality of counterfeit Beats by Dr. Dre. Medium quality headphones are sold for $45, and the lowest quality fakes are sold for $30. An order of 100 units for counterfeit headphones can be filled in one day, with orders of 1,000 taking up to a week.
The in-ear version of Beats by Dr. Dre are sold for even less. On the streets of Shenzhen, the price of fake in-ear Beats earphones were selling for $1. On the company website, the legitimate version of in-ear Beats sell for $100.
Source: Johan Nylander, “Chinese fakes cash in on Dr. Dre’s Beats headphones bonanza,” CNN, October 14, 2013.