Apple's iPhone 7 might not have a headphone jack which is bad news for Square.
According to the Macotakara, a Japanese blog came up with an article according to which Apple Inc. has plans regarding removing the headphone jack that measures 3.5 mm from the upcoming iPhone 7. The idea is to reduce the thickness of the smartphone. As rumors suggest, the smartphone users will be able to connect their headphones with the device via a Lightning connector or simply through Bluetooth. Moreover, lightning compatible headphones are expected to be launched with the device the coming year.
The present headphones connecting port has a particular standard size, which acts as a major barrier when it comes to minimizing the thickness of the Apple iPhone. The specifications for the lightning headphones were provided to the manufacturers the previous year too through the Made for iPhone licensing initiative.
Trip Chowdhry, the renowned analyst is of the believe that there are numerous benefits for AAPL if it actually gives up on the headphone jack. First and foremost, it will make the device thinner making it different from all the other models that have been launched to date. This will motivate the Apple users to upgrade to the new device. Moreover, he also pointed out that the transactions that were made via Square Inc. and Intuit card charging devices will not be possible anymore since the port would change. So the only options for the users to make transactions will be to make use of Apple pay with an iPhone in a format that is peer to peer. Moreover, the above mentioned companies, if they want to continue their association with the service will have to pay royalties to Apple or assign a share of their earnings to them to sustain.
According to the rumors, the upcoming Apple product will have several amazing features that will be completely different from the current iPhone 6 or 6 Plus. Moreover, it is also assumed that the sales of iPhone 6S were not really as exciting as the company expected since a lot of consumers are still waiting for iPhone 7 launch.
According to a popular site, “As markets across the world increasingly become saturated, and competition intensifies, upgrade cycles will help Apple in maintaining revenue growth. The success of newer upgrade cycles will also increase the number of Android switchers to iOS, and raise replacement rates.”
Hence now the company has a lot of scope to grow however companies like Intuit and Square need to worry and come up with alternate solutions.
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