I'm probably more of an audiophile than most here on this forum..
and let me just explain this to you: Beats audio is not a gimmick, but Cantaffordit is right. It's all about the audio jack.
Lets say I hook up my phone, or an iPod, or even my computer via 3.5mm analog connection to my HT receiver. There is a very high probability that the components inside the phone, iPod, or computer will / can create noise, artifacts, unwanted sounds, that you may or may not hear during playback. It is a fact that with my laptop, if I hook it up to my receiver via 3.5mm cable with the power cord plugged in, and the HDMI cable is not plugged in as well (I.E. acting as a ground), there's a VERY loud and noticeable 'buzz'. 99/100 of you wouldn't even care about it, but to me, my god I can't effing stand it.
Beats audio takes a 3.5mm jack, eliminates this buzz, and all unwanted noise, by giving all audio internal connections their separate channels / wires, plus extra power (this does NOT mean louder). This means crystal clear music, COMPARING TO, but NEVER surpassing, digital audio (which is the CREME of the cake when it comes to audio, until you get into the tube amp tier).
Say thank you everybody, I hope this clears everything up.
Beats has nothing to do with the speakers on the device.