So now Apple is either going to kill of Beats or fragment their brand even more by creating Apple branded headphones.
My guess, however, is they will keep beats as the "cheaper" option and the Apple branded over-ear headphones will be the high end, super expensive option.
I have Beats Studio 2's and AirPods, and am pretty damn happy with both of them. Time will tell what is going to happen...
Who knows for sure? My feeling is that Apple likes maintaining a separate Beats brand. It has a clientele/brand identity all its own, and is sold in places you won't find Apple products.
Apple also has its own brand-name identity and appearance, and customers who would buy Apple-branded
anything before they would buy Beats (or Bose, JBL, Sennheiser, etc.). Essentially, the world is big enough for both Apple and Beats, and the net effect would be to sew-up a larger percentage of the "personal audio" market than either brand could manage on its own.
Overall, Beats is platform-neutral. While they do pair more easily with Apple gear, they are perfectly compatible with Android, Windows, gaming systems, Bluetooth-capable home A/V gear, etc. There are probably loads of Beats sales to people who own no other Apple gear.
I think going forward that the key distinction between Apple Audio and Beats will be Apple ecosystem integration. The HomePod/AirPod/"OverEarPod" feature sets will include Siri/HomeKit integration that Beats would lack - people not invested in the Apple ecosystem won't want to pay extra for features they won't use.
It's rumored that the next version of AirPods will integrate more fully with Siri, in a very similar way to HomePod. "OverEarPods" might be just another variant on the same formula. "No matter how you like to listen to music, we have a Pod for you!"
And, dear audiophiles, don't worry, Apple isn't out to get your business. How could anyone persuade you to buy something you don't want? If you love your Grados, ATs, etc., they'll still be available through your favorite high-end A/V salon, and you can continue to boast of your greater discernment. After all, no mass-market product is ever worthy of connoisseurs, no matter what brand or product we're talking about. Meantime, Apple will happily sell their "high end" headphones to people who had never previously thought to spend "so much" on a pair of headphones.