I think what a lot of the posts on this thread are missing is that Beats is not really a headphone company, it's a jewelry company. And jewelry doesn't need to be made of anything special, it just needs to be rare [0]. The prohibitive cost of Beats is its selling point.
Nick Szabo's essay on money Shelling Out - The Origins of Money [1] points out how Wampum in its various forms was worn to signify wealth. Ornamental swords and axes with no utility were flashed around as well.
This is nothing new - what's interesting is that we're beginning to see consumer technology take the place of beads, fabrics, stones and metal.
[0] Using wampum as an example again – the materials themselves were common however energy was required to collect shells/teeth/furs etc – energy that could otherwise be used to collect food, repair huts, make clothing etc. Money abstracts this cost, but it's still there effectively