My own limited market research here -- OK, I asked my daughter and my niece -- is that kids are buying them both for the quality of the sound and for that modest, musical-looking "b" on the side, Dre's imprimatur.
Beats have problems. Reviewers have noted the cords break and the other materials appear to be a little cheap, plus the balance of the sound isn't always to individual tastes. If you searched, you could probably find headphones more to your liking for less money.
But on the whole, Beats have earned a solid reputation as a reliable brand with better-than-average sound quality that is cool to wear -- to be seen wearing. Quality and fashion feed into each other.
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