Beats are a scam. They were originally designed by Monster cable, they of the unnecessary $100+ HDMI cables. The story behind it is pretty funny. Jimmy Iovine CEO of interscope saw an opportunity to make a crapton of money on "official artist" headphones regardless of how good they sounded or whatever. Anyway Monster signed a bad deal giving interscope rights to all of the IP (Intellectual Property) designs, rights to manufacture, etc. Beats kicked Monster out of the deal and took all of the IP and now HTC is the actual manufacturer.
tl;dr Beats were going to sell millions of headphones because they are cool whether the sound was good or not.
Here's the longread from Gizmodo on the whole history, it's an interesting read. http://gizmodo.com/5981823/beat-by-dre-the-inside-story-of-how-monster-lost-the-world