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In a report confirming rumors Apple will remove the headphone jack in the iPhone 7 to improve the device's water resistance, KGI Securities analyst Ming-Chi Kuo today shared his predictions on how Apple will capitalize on the Bluetooth headphone market in the coming months.

First and foremost, as has been rumored, Kuo suggests Apple is working on its own Bluetooth-like communication chip and its own Bluetooth headphones. Previous information suggests the Bluetooth chip will improve battery performance for longer battery life.

The chip may be included in the wireless earbuds Apple has in development, which are said to be Bragi Dash-style wireless Bluetooth earbuds that are entirely wire free. The earbuds will be called "AirPods," based on trademark filings that have been discovered, and the product could be unveiled as early as September 7 alongside the iPhone 7.

bragidash.jpg
Apple's earbuds are rumored to resemble the Bragi Dash

According to Kuo, Apple will sell its Apple-branded Bluetooth headphones alongside its Beats line of headphones, targeting the high-end market with the "AirPods" and the mid-range market with the Beats headphones. It is not clear if that means the AirPods will be priced higher than Beats headphones are at the current time or if Apple plans to lower prices on Beats going forward.
We believe Apple will position Beats in the midrange market once it launches Apple's own-brand Bluetooth headphones, in order to maximize profit with a dual-brand strategy. We also believe Apple will have its own-designed Bluetooth-like communication chip, given its higher requirements for power-saving, communication specs and potential rapid growth of Bluetooth headphone shipments. Cheng-Uei and Inventec are the likely choices for assembly service.
While Apple will sell multiple models of Bluetooth headphones and expects strong growth potential in the market, Kuo does not believe the company will package Bluetooth headphones with the iPhone 7. Instead, Apple is likely to ship the iPhone 7 with Lightning-based EarPods that feature a Lightning connector instead of a 3.5mm headphone jack.

Apple's Bluetooth headphone plans will become clearer starting tomorrow, following the debut of the iPhone 7. At its September 7 event, Apple will show off the iPhone 7 and the iPhone 7 Plus, the Apple Watch 2, and new Beats headphones. As previously mentioned, it's possible we'll see the AirPods, but given a lack of rumors, the device may not be ready for launch.

Article Link: Apple's 'AirPods' to Use Custom Bluetooth Chip, Target Higher End Than Beats Brand
 

jimbobb24

macrumors 68000
Jun 6, 2005
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I thought the Beats headphones were pretty expensive - but I am not much of an audiophile. Can someone who knows please comment - what does a really nice pair of wired headphones cost - what is high end?
 
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tkukoc

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Sep 16, 2014
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Great, another splintering.. can't use the regular bluetooth chip that everyone else uses to make it universal.. No no.. we have to have our own nonsense again. This is getting old quickly.
 
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Waxhead138

macrumors 6502
May 18, 2012
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Apple "Custom Bluetooth Chip" = add $599

You might be kidding you might not be lol....but if Bragi Dashes go for 299.99-350.00, you can probably safely bet that Apples version will be no less than $399.

Edit: Well, the presentation just ended, and I'm now grabbing my apple spoon and eating some words lol. Really shocked the pods are coming at 159.99. Nice.
 
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keysofanxiety

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Nov 23, 2011
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I thought the Beats headphones were pretty expensive - but I am not much of an audiophile. Can someone who knows please comment - what does a really nice pair of wired headphones cost - what is high end?

High end can be seriously high end in pricing.

However some of the best wired headphones you can buy, at an unbelievably reasonable price (around $100), are the Sony MDR-7506s. They're still ubiquitous in recording studios to this day. Absolutely fabulous and can't recommend them enough.
 
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citysnaps

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Oct 10, 2011
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Excellent news. Johny Srouji for the win!

I can see Apple doing well with this especially if battery life, audio quality, and features are substantially better than other products. Guessing around $200-$250.
 
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KdParker

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Oct 1, 2010
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Not sure I see this as an option, with out a headphone Jack, Apple might give us some bluetooth headphones. Why not these?

I am hoping that they will go wireless with the iPhone 7.
 
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