This. They followed Apple's playbook to a T, and pulled it off in a way that I think even Apple would be hard-pressed to compete with (it's been what? 2 or 3 years since the company itself started offering a product, and they're already #2 in their entire market, and #1 in their target demo, something insane like that; they've also got most of the market competing with them on their terms; Apple is still lightyears behind any of its competitors outside of the portable segment, and any time they gain an inch in that segment, their competitors gain a mile).
As far as what else they've done for the market - they've shifted the overall price of headphones UP quite dramatically ($799 is the new $399), they've set a new (and very low bar) for quality, and re-worked the priorities of new designs (towards bass heavy and "flashy" ("be unique, dress the same!")). That effectively spells "end of the world" for more neutral/treble-heavy open-back designs (take the Sony MDR-F1 or Audio-Technica ATH-AD1000 as examples). That's unfortunate in my opinion; it's not so much that I dislike their business model, or because I dislike their products (which is more of a comfort thing, I'm sure - I've never favorably regarded any headphone which has been uncomfortable in the slightest), it's because their goal is basically to homogenize the entire market and it's offerings. That's just obnoxious in my view.
Quote:
Originally Posted by
rhythmdevils 
Beats didn't sell a product to a group of people who were looking for something. They created a new need and desire in people that didn't exist beofre, they created a market for their product. That's why none of the other companies can catch on quite like Beats, because the market isn't for headphones, it's for Beats. They have literally shaped people's minds and perception. The market is so completely theirs that Beats are a symbol and identifier to people and so they get free advertising all over the place, and all kinds of people propagate the Beats image and lifestyle in the ways Malvauex mentioned.
It's like they created a new word in a universal language that expressed something people weren't expressing before, and suddenly everyone wants to be a part of it, and claim part of this new meaning and identity, and everyone wants to use the new word to express themselves. Except everytime they do, Beats makes money.