Apple Inc. Beats Purchase Could Be Positive for BlackBerry Ltd

iphone 8 apple stockElisaRiva / Pixabay

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.

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About the Author

Vikas Shukla
Vikas Shukla has a strong interest in business, finance, and technology. He writes regularly on these topics. - He can be contacted by email at vshukla@valuewalk.com or on Twitter @VikShukla10

8 Comments on "Apple Inc. Beats Purchase Could Be Positive for BlackBerry Ltd"

  1. Not quite sure I see the point… Well, I guess we’ll found out soon enough, rumor or not!

  2. grrrr I am saying if they do change it, can a person listen to music while device is charging, or Is that a to complicated question rattyuk?

  3. 1. Yes, a large amount of iPhone users are going to abandon their chosen smartphone platform because they want to use a 3.5mm jack for headphones. I am sure the overwhelming deciding factor for consumers when shopping for a smartphone is, “but does it have a 3.5mm jack”?

    2. iPhones come with a complementary pair of earpods. If Apple were to take away at 3.5mm jack from the iPhone, the consumer would be getting a new pair of earpods that supported a lightening connection. Its not ideal, but people wouldn’t be left up a creek without a paddle.

  4. just because a spec has been provided doesn’t mean they will do away with 3.5mm jack. Maybe it is a spec for noice cancelling headphones/earpods to pull power from the users mobile device while listening to music. This could allow users to recharge the built-in headphone batteries from their mobile device. Maybe not.

  5. What you forgot is the external devices that have made their fame from the head phone jack like bar code scanners, credit card readers, etc. Will they all need adapters.

    Microsoft has “Developers, Developers, Developers, Developers!”. Apple will have “Adapters, Adapters, Adapters, Adapter!” rant.

    Four off the top of my head.
    1. MicroUSB to Lightning
    2. 3.5mm to Lightning
    3. 3.5mm to Lightning w/Charging
    4. 3.5mm for external devices to Lightning

  6. Well that’s a pretty dumb comment.

    Firstly this is just a rumor at this point, but your future iPhone 6 purchase is in jeopardy from a rumor?

    Secondly with such a knee-jerk post, one assumes that the iPhone 6 purchase was never an option.

  7. Does this mean I can’t listen to my music while my device is charging anymore, or watch a movie?? I’m not saying that I have a iphone but if this is the case I won’t be buying the iphone 6 if I can’t use it while charging.

  8. Kurt Windibank | Jun 6, 2014, 8:43 am at 8:43 am |

    That was probably the dumbest article I have ever read…..I want my 15 seconds back.

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