You have to remember the difference between your perception and the public's perception. The public has no idea what good audio sounds like. They've probably never heard of The Wirecutter. They are not audiophiles.

Beats, _regardless of its actual quality_, is perceived as high quality. That's why people pay for the headphones. That's why they make so much money. That's why Apple bought them.

They are considered fashionable and high-end. It's the perception that counts.