Honestly a lot of it is just how little space folks in southeast Asia have to themselves, even "real homeowners", at least relative to folks in the USA— home theatres don't make much sense when you risk pissing your neighbours off, and while IEM fit is a finicky thing, they're also significantly cooler than full headphones.
Only have my limited perspective to go off, but I imagine the plethora of manufacturers is at least in part borne of folks ripping designs off and not wanting to be too obvious about it. IEMs are also effectively jewellery for a lotta folk, ergo the multi-kilobuck stuff. Think Vertu smartphones and how idiotic that whole business model is.
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