[return0]

I do not consider myself an apple fan, but i also don't feel my iphone is 'mediocre'. You certainly pay a premium, but it's not like you're paying overpriced fabrics made in bangladesh. I 'm not sure how big a deal beats is outside the US, as well. I also don't agree that 1) they needed to buy any marketing genius (Apple is a marketing genius itself) 2) they are looking to sell overpriced products or 3) that they want to expand in demographics that can't afford to pay for the premiums

[001sky]

Not sure about any of these points being very robust. (3) is simply false, at 200-400 price points you are <already> selling at "premium pricepoints"...thus quality at a profit, is no problem; and wrt (2) since (3), no need to assume (2); and with respect to (1), Beats by DR DRE has street cred in urban markets (people using monthly/android phones) that apple lacks (white suburban rich etc)...if apple can "leverage it more profitably" by simply increasing underlying quality...the make/buy decision does not seem overly complex here.