Last week, Apple Inc. (NASDAQ:AAPL) officially confirmed that it is buying Beats Electronics for $3 billion. Many wonder why the tech giant would pay such a hefty sum for a headphone maker with a fledgling music streaming service. Experts said bringing in Beats co-founders Jimmy Iovine and Dr. Dre to Apple was another goal of the company.
Apple wants you to connect your headphone through the Lightning port
But Apple Inc. (NASDAQ:AAPL) was perhaps planning something entirely different. Jordan Kahn of 9to5Mac has learned that Apple has issued a new specification for manufacturers to make headphones that connect to the iPhones and iPads through the Lightining port rather than the 3.5mm headphone jack. We have seen Apple doing away with many dated components including the 30-pin dock connector. The Lightning port will become a permanent alternative to the conventional headphone jack. But it’s hard to come up with practical or obvious benefits of such a radical change. Maybe Tim Cook is planning something that only Apple knows.
But Chris Esparza of N4BB says it could help BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB). The Canadian company’s decline began with the launch of its touchscreen BlackBerry Storm. Esparza says, just like BlackBerry Storm, the recent purchase could be the first proverbial nail in the coffin of Apple Inc. (NASDAQ:AAPL). He says the iPhone maker has been losing its position as the king of smartphones for the past few years. If Apple dumps the traditional headphone jack in favor of the Lightning port, it could be the beginning of the end of the company, says Chris Esparza.
How Apple’s move will benefit BlackBerry
Meanwhile, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) is on the verge of a turnaround, and expects to become profitable by FY2016. John Chen has made some significant changes, including selling the real-estate assets and partnering with Foxconn Technology Co Ltd. Its latest low-cost Z3 smartphone sold out on the first day of launch in Indonesia. Hype around the upcoming Windermere and Classic is also gathering steam.
Chris Esparza says Apple Inc. (NASDAQ:AAPL) risks losing market share if it replaces the traditional 3.5mm headphone jack with the Lightining port. And BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) could fill in that gap. The ailing Canadian company has been consistently improving its BB10 platform.
Apple Inc. (NASDAQ:AAPL) shares inched up 0.10% to $648 in pre-market trading Friday.