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September 10, 2016 12:00 am

Apple Removed Headphone Jack From New iPhones Because It Owns Largest Bluetooth Headphone Company

Apple's new iPhones -- the iPhone 7 and iPhone 7 Plus -- don't have the headphone jack. The company's SVP Phil Schiller said the move signifies "courage" from the company to put a 100-year-old audio standard to bed. But there could be one more reason for this transition to a Bluetooth/Wireless headphones future: it owns the largest Bluetooth headphones company -- Beats. The Verge reports: More likely is that the lack of a headphone jack on the iPhone -- and increasingly, on Android phones as well -- will lead to an uptick in sales of Bluetooth headphones. And it just so happens that Apple owns the number one Bluetooth headphone company, Beats. Beats brings in more revenue from Bluetooth headphones than LG, Bose, or Jaybird, according to NPD figures released in July. In terms of unit sales, it controls over a quarter of the Bluetooth headphone market. Bluetooth headphones are also disproportionately profitable among headphones. NPD has them accounting for 54 percent of all dollars spent in the market, despite representing only 17 percent of units sold in the U.S.. These headphones sell at high prices with high margins, and Apple's company is making the best of it so far. Sales of Bluetooth headphones are already growing, with units up 64 percent year over year according to NPD's US figures. And Apple's removal of the headphone jack is likely to give them another boost.

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