Perfect match for apple.
They get a great streaming service, MOG 2.0, to help flesh out their iTunes offerings package.
The sound quality on beats is not that bad. There is a premium paid for style and logo but all things considered the beats lineup is a big sq improvement for apple, and gets some pretty good noise canceling tech to boot.
C'mon how is this even surprising?
Apple stuff costs more because....it has the apple logo and people think their products look cool, work well enough, are easy enough to operate, most "experts" say the products are high quality and not because the performance or hardware is better/more costly.
Beats stuff costs what it does for the exact same reasons!
As far as I can see this will be a match made in heaven, greatly improving the offerings of both sides most likely.