Jimmy Iovine and Dr. Dre may have built a $3.2 billion empire on a product that cost less than $20 bucks to create.
The New York Times reports that Dr. Dre’s Beats by Dre headphones are inexpensive to make, with headphone designers estimating “the cost of making a fancy headset is as low as $14.” A pair of Beats by Dre can cost upwards of $450.
While Beats by Dre may be made for cheap and have questionable sound quality, the brand is a marketing juggernaut. Beats by Dre owns an 27% of a headphone industry that reported $1.8 billion in sales last year.
Dr. Dre could be days away from being the first rapper turned BILLIONAIRE … thanks to a mega-deal for Apple to snatch up his Beats Electronics brand.
Apple will reportedly buy Beats for a whopping $3.2 BILLION — and since Dre and Interscope honcho Jimmy lovine created the brand … it’s a safe bet they will walk away with a huge chunk of that cash.
Beats by Dre founders Dr. Dre and Jimmy Iovine are joining forces with the University of Southern California, which was founded in 1880 – but they’re not doing it as some sort of history lesson. Rather, they’re banking on the future. The noted hip-hop figures are donating $70 million to create the Jimmy Iovine and Andre Young Academy for Arts, Technology and the Business of Innovation. Starting in the fall of 2014, Trojans will be able to enroll in the four-year program, which offers courses in technology, art, design and marketing.
Today marks the 20th Anniversary of solo debut for music mogul and entrepreneur Dr. Dre. The Chronic named after high grade marijuana in California was released on DeathRow Records and executived produced by Suge Knight in Los Angeles in 1992 featuring Daz, Snoop Dogg, RBX, Kurupt, Lady of Rage and more. This album set the bench mark for a classic rap/ hip hop album. In 2012, Dr. Dre makes $100 plus million selling speakers and headphones. Checkout throwback vid ‘Nothin But A G Thang’ below:
Top 10 highest paid musicians via Forbes (pre tax earnings)
1. Dr. Dre ($110 million)
2. Roger Waters ($88 million)
3. Elton John ($80 million)
4. U2 ($78 million)
5. Take That ($69 million)
6. Bon Jovi ($60 million)
7. Britney Spears ($58 million)
8. Paul McCartney ($57 million, tie)
8. Taylor Swift ($57 million, tie)
10. Justin Bieber ($55 million, tie)