Totally aside... I don't really understand why beats gets singled out so often, when it comes to cost of components. IDK, I feel like beats doesn't get enough credit as a company.
First, if you look at a shelf of products (say an airport gadget shop), beats is not the worst value on the shelf. Most beats products are OK. Half the gear (in general) in those shops is crap.
Second, Beats did a good job on "product". They understood what price ranges to target. The understood what each form factor was for, and how to explain this to consumers. Beats' actual competition was earbuds, not alternative "studio headphones." They knew which sound qualities (bass, basically) customers would want, for the music they actually listen to while walking around a mall.
They aren't always the best price performance across categories, but they aren't crap either.
Anyway, the reason I think they deserve credit is not that. They understood the implication of "wearables." They are the ones that managed to build that company, with a foot in fashion and another one in electronics. Part authority on what's cool, part predictor of what's cool.
If you do the bill of materials test on versace it won't go well.
Compare beats as the fashion-tech-wearables brand to all the smartwatch attempts at similar. Beats stands out.