What Could Happen If Apple Disrupts the Headphone Jack

Latest rumor is Apple is considering ditching traditional headphone jack.

ByABC News
December 4, 2015, 12:48 PM
A person walks by an Apple Store on April 23, 2013 in San Francisco.
A person walks by an Apple Store on April 23, 2013 in San Francisco.
Getty Images

— -- If any company has the power to disrupt an entire industry, it's Apple.

The iPhone maker could be planning to nix the traditional 3.55 millimeter headphone jack on an upcoming iPhone model in favor of its lightning connector, according to the latest rumors on various technology blogs. Apple hasn't commented on the speculation.

Nixing the traditional headphone jack could allow Apple to create an even thinner iPhone. As it stands now, the iPhone 6s and iPhone 6s Plus are a little more than one-quarter of an inch thick, However, the decision would also reverberate through the $9 billion headphone industry, Daniel Ives, managing director of the technology, media and telecom research group at FBR Capital Markets, told ABC News.

"[They] have all options on the table around the potential blockbuster iPhone 7 design and a thinner design is something that we hear is a possibility," he said.

"If Cupertino [Apple's headquarters] went down this path, it would send ripple effects throughout the headphone industry," Ives said. "Given Apple’s acquisition of Beats, we would be surprised if [CEO Tim] Cook does not use this as another cross-sell opportunity down the road into 2016."

While the move could positively disrupt the headphone industry for Apple, Ives said he also sees a potential negative.

"This move would have potential downside consequences, in our opinion, from customer backlash, which is the last thing Cook wants in light of the ongoing smartphone wars," he said.