Well, they're already including a pair of earbuds with every iPhone at a cost. So then they're just moving the current DAC to them. But they're NOT upgrading the internal DAC they're downgrading it, which was the original argument I was responding to. So given that scenario, they may indeed save a few pennies. Regardless, there's nothing that says it can't be a loss leader in order to pave the way toward a much more lucrative business in granting licenses to third parties, and benifiting from increased sales of their own products. In fact an increase in DACs for increased sales of Apple's other products might actually provide enough volume to lower the overall cost of this move below what they are currently doing. Certainly they will make money on the assured sales of 3.5mm adapters, and they will surely start saving in other devices like Macs, and iPads and possibly offset the costs. In a company like Apple, these decisions rarely have to be accounted for by a single product.
I've given several reasons why consumers might find some benifit in using the Lightning port (not a new proprietary connector). Whether you personally agree with them or not is not my concern. However, that's not the basis for my comment -- if a customer is NOT using the 3.5mm Jack, or rarely uses it, and Apple has studies which show the majority of their customers aren't using the jack for making audio connections, then it's almost assured that they don't WANT it. Customers using wireless BT accessories already, or AirPlay for instance. I rarely use my 3.5mm jack. When I do use it, it's because Apple gave me a headset I can plug into it, which I do on occasion when I need to make a hands free call and my Bluetooth headset is out of power. But that problem is easily solved if Apple gives me a new set of Lightning equipped headphones. So not only do I not want a 3.5mm port, I don't care if Apple removes it either. If Apple has found the majority of cutomers use their iPhones like me, then they're safe to move ahead and drop the 3.5mm Jack.
I'm sure you've had a nice Christmas break. Time to go back to work at One Infinite Loop, Phil.