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Apple Inc. Dumps Audio Jack on iPhone 7, Gains Dongle: Apple Rumors

Apple Inc (NASDAQ:AAPL) iPhone

Apple Inc. iPhone 7 may not come with a headphone jack, but instead come with a Lightning-to-audio dongle, claims the research note of a Deutsche Bank. A Deutsche Bank note, which is based on supply-chain sources also claims that the iPhone 7 Plus will have 3GB of RAM.

Apple Inc (NASDAQ:AAPL) iPhone

Apple to replace headphone jack with Lightning to dongle

Apple’s next-gen smartphone will be shipped without a traditional 3.5mm headphone jack, as per a number of credible reports. But, Deutsche Bank claims the iPhone will instead ship with a Lightning to 3.5mm dongle. It would be a smart move by the tech giant. Also, it will be more user-friendly than shipping Lightening headphones.

Further, the research note also says that the iPhone maker is anticipating a ‘softer demand’ for the upcoming iPhone 7. As a result, Apple will be limiting the production. But Deutsche Bank believes, the tech giant is simply taking a conservative approach to manufacture volumes.

All other information in the research note is similar to what have been reported before, for instance, the identical design to the 6s; better sound, possibly stereo; improved camera on the standard model, dual cameras on the Plus, a touch sensitive Home button; and better waterproofing.

Supply-chain sources. Are they reliable?

Apple Inc. CEO – Tim Cook – has himself observed that the supply-chain sources are not always the most reliable source of information. There are some reasons why this report of the Deutsche Bank should be viewed with some suspicion. The new iPhone will be available in a new color, says Deutsche Bank. However, the research note does not reveal what “color” is the new iPhone. This is unacceptable as the source is expected to know the specifications of that color.

Secondly, the research note claims that Apple is including a Lightning-to-3.5mm dongle, but that seems a somewhat odd decision. As it would make the tech giant somehow admit to the world that the people are not ready to give up their analog headphones. In addition, the dongle would have to contain a Digital to Analog Converter (DAC) to work with existing headphones. The dongle would make a pretty bulky adaptor if the Cupertino-based giant is not able to make it significantly smaller than the existing ones.

There are many users who have expensive headphones and they might want to continue to use them. The Silicon Valley giant will still have to make an adapter available for sale. However, supplying it instead of lightning EarPods, would be a weird way to persuade customers to use digital earphones.

Apple Inc. must know that abandoning the headphone jack could be a risky move. Also, it must know that the transition away from the 3.5mm headphone jack would not happen overnight, and might receive censure and backlash. Nevertheless, shipping a new iPhone 7 box with a dongle looks like a reasonable compromise for both the smartphone maker and users.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.