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

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

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.

Top Rated Comments

(View all)
Avatar
54 months ago

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.

If they think they can do better, they should.
Score: 22 Votes (Like | Disagree)
Avatar
54 months ago

Forget about that, how about a no-interference chip and battery life that isn't ****?

.........how about waiting until it is available and read some reviews before commenting negatively?
Score: 20 Votes (Like | Disagree)
Avatar
54 months ago
Apple "Custom Bluetooth Chip" = add $599
Score: 15 Votes (Like | Disagree)
Avatar
54 months ago
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.
Score: 14 Votes (Like | Disagree)
Avatar
54 months ago
People thinking they are going to bundle these with the phone :D
Score: 13 Votes (Like | Disagree)
Avatar
54 months ago

All I wonder is how you'll be able charge them and if there is a way to have it play a sound if one were to fall out

Pardon my confusion, but if one falls out, wouldn't you just know?
Score: 13 Votes (Like | Disagree)

Top Stories

Early iPhone 12 Tests Show Ceramic Shield is Stronger and More Scratch Resistant Than iPhone 11 Glass

Friday October 23, 2020 1:21 pm PDT by
Apple's new iPhone 12 models are protected by a Ceramic Shield cover glass that has nano-ceramic crystals infused right into the glass to improve durability. According to Apple, Ceramic Shield offers four times better drop protection than the glass used for the iPhone 11 models. YouTube channel MobileReviewsEh conducted some tests on the iPhone 12 using a force meter to compare its performance ...

First Impressions From New iPhone 12 and 12 Pro Owners

Thursday October 22, 2020 4:20 pm PDT by
It's already Friday, October 23, in Australia and New Zealand, which means some customers who purchased an iPhone 12 or 12 Pro already have their new devices in hand. We've seen dozens of reviews of the iPhone 12 and iPhone 12 Pro from media sites, but now first impressions from regular Apple customers are available. Image via MacRumors reader Boardiesboi New iPhone 12 and 12 Pro owners are...

iPhone 12 Pro Allows You to Measure Someone's Height Instantly Using LiDAR Scanner

Saturday October 24, 2020 11:12 am PDT by
iPhone 12 Pro models feature a new LiDAR Scanner for enhanced augmented reality experiences, but the sensor also enables another unique feature: the ability to measure a person's height instantly using the Measure app. You can even measure the seated height of a person in a chair, according to Apple. When the Measure app detects a person in the viewfinder, it automatically measures their...

Apple VP Kaiann Drance Interview Addresses Battery Life, MagSafe, and Power Adapter Concerns

Friday October 23, 2020 3:37 am PDT by
Apple's Vice President of iPhone Marketing, Kaiann Drance, has provided a new interview to Rich DeMuro on the Rich on Tech Podcast, to discuss the iPhone 12 and iPhone 12 Pro. Although much of the interview repeated points from Apple's "Hi, Speed" event, there were a number of interesting tidbits regarding the affect of 5G on battery life, MagSafe concerns, and the lack of a power adapter in...

iPhone 11 Pro Outlasts iPhone 12 and 12 Pro in Extensive Battery Life Test

Friday October 23, 2020 8:36 am PDT by
Arun Maini today shared a new side-by-side iPhone battery life video test on his YouTube channel Mrwhosetheboss, timing how long the new iPhone 12 and iPhone 12 Pro models last on a single charge compared to older models, with equal brightness, settings, battery health, and usage. All of the devices are running iOS 14 without a SIM card inserted. In the test, the iPhone 11 Pro outlasted both ...

Apple Distributing New Heated Display Removal Machine for iPhone 12 Repairs

Thursday October 22, 2020 6:20 pm PDT by
Apple is providing Genius Bars and Apple Authorized Service Providers with a new heated display removal fixture for iPhone 12 and iPhone 12 Pro repairs, according to information obtained by MacRumors from a reliable source. To open iPhone 12 models, technicians will be required to slide the device into a specialized tray, and then place the tray into the high-temperature fixture for two...

Apple Warns MagSafe Charger Can Leave Circular Imprints on Leather Cases

Friday October 23, 2020 3:23 pm PDT by
If you keep your iPhone in a leather case while charging with Apple's new MagSafe Charger, the case might show circular imprints from contact with the accessory, according to a new Apple support document published today. Apple's leather cases for the iPhone 12 and iPhone 12 Pro are not available until November 6, but a MacRumors reader has already shared a photo of a circular imprint on...

MagSafe Charger Teardown Reveals Simple Design With Magnets and Charging Coil Encircling a Small Circuit Board

Friday October 23, 2020 7:50 am PDT by
iFixit has today shared a teardown of Apple's new MagSafe charger for the iPhone 12 and iPhone 12 Pro. An X-ray of the MagSafe charger courtesy of Creative Electron reveals the internal charging coil surrounded by a circular arrangement of magnets within the puck. The only seam that iFixit was able to leverage to open the device was where the white rubber circle meets the metal rim,...

PSA: Non-iPhone 12 Models Charge Super Slowly With MagSafe Charger

Friday October 23, 2020 4:11 pm PDT by
Alongside the iPhone 12 models, Apple introduced a new $39 MagSafe Charger that's meant to work with the magnets in the iPhone 12 Pro models to charge them up at a maximum of 15W. The MagSafe Charger is technically able to be used with older iPhones, but it's not a good idea because the charging with non-iPhone 12 devices is so slow. We did two tests with the iPhone XS Max, draining the...

New Photos Offer Better Look at iPhone 12 Color Options

Tuesday October 20, 2020 2:34 am PDT by
As we wait for the iPhone 12 review embargo to lift later today, more pictures are circulating of the devices in real-world lighting conditions, providing a better look at the different colors available. Leaker DuanRui has shared images on Twitter of the iPhone 12 in white, black, blue, green, and (PRODUCT)RED. The black and white colors are similar to the iPhone 11 colors, but the other...