I agree! Beats by Dr Dre success is a result of genius marketing to the point where people are paying a lot mostly because of the brand. General consensus today is that these are the headphones to have. Ofcourse, there are better or similar quality headphones to be had for less cost, but at the end of the day it's about if most of the customers are happy with their Beats, be it the brand or the quality, they will buy it.

Personally, I admire Beats by Dr Dre because they have a good piece of business, and also I have thought about how you would go at marketing headphones and I really come up with nothing unless I would be famous or have a person of authority with me when it comes to sound.

Beats by Dr Dre are able to have these margins because they are the benchmark of headphones, and because they own a huge marketshare they can charge nearly whatever they want. Anyone trying to undercut them, or sell somewhat quality headphones for cheap, most customers will now think these products are bad because of their low price. All of this is a result of marketing, and it is not exclusive to this market, for example cosmetics comes to mind where good marketing from a famous person can create high demand on incredibly cheap products because of said famous person backing it usually leads to a desirable brand.