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2018 iPhones may not have headphone jack converter

Cirrus Logic, a company that manufactures audio hardware for Apple iPhones, has announced a quarterly revenue of $254.5 million. Cowen analyst Mathew D. Ramsey said the cirrus fiscal guidance for the fiscal second quarter “all but confirms Apple Inc’s removal of DAC headset converter ‘dongle’ to its new forthcoming iPhones”. In defense to his argument, Ramsey further stated that the converter will continue to ship some legacy models, Just not the new ones.

Cirrus logic generates 76% of its revenue from the audio hardware sales to Apple Inc products, hence Cirrus and Apple have a correlated profit dependence. Another analyst Barclays Blayne Curtis had made a similar prediction back in April.

Apple Inc had earlier decided to discontinue their headphone jack used for iPhones since 2016 and replaced it with lightning to 3.5mm adapter. Since then, Apple Inc has provided lightning to 3.5 mm adapter with every iPhone from 2016 instead of the headphone jack in order to prevent the complication of transitioning to lightning display. The dismantling of the part indicated that DAC chips used for signal conversion were designed by Cirrus.

Until 2017 Apple Inc has been packaging the lightning to 3.5 mm adapter with every iPhone, But this exercise is expected to be discontinued very soon.