New iPhone will Speed Up the Growth of Phone Adapter

Everyone is still exciting about the launch of new iPhone X and iPhone 8, all the press and investors focus on 3D sensor and facial recognition, so that People lost sight of one big trend. Apple is going to kill the 3.5mm audio Jack for real. Type C and Lightning jack are like human’s brand. We only use small part of their capabilities. Both of their design specifications can meet all the requirements for at least 1~2 years. On the other hand, spec of 3.5mm audio jack is almost 95% unity, which means no additional profit within, including profit of wired earphones. That is why wireless earphones or TWS earbuds are everywhere. On Alibaba.com, nearly 57% of new posting products for Bluetooth earphones or TWS earbuds were posted within 6 months. On Amazon and eBay, wireless earphones often appear on Top Selling Ranking list recently.

The selling of Apple’s AirPods is very well and the user experiences are also perfect. iPhone users are getting used to wireless earphones. All the manufacturers of audio jack connector regarding smartphone application (3 poles) are waiting for Samsung to give up audio jack solution. Galaxy S8 and Note 8 still keep their audio jack. Once Samsung launched a new model without audio jack, all the manufacturers will start to release the EOL (End of life) notice as soon as possible, then stop producing it within half of a year, because there is no enough profit for audio jack since 2012. However, feature phone will keep audio jack.

At last but not least, will customers throw away their old wired earphones, especially iPhone one, with great quality and perfect design? No, I don’t think so… Therefore, big demand for audio jack "adapter" is concealing. Besides, manufacturers are more than willing to switch their audio jack capacities from smartphones to accessories. In manufacturers’ point of view, Audio jack or any kind of components for smartphone are more difficult to produce and higher cost, but for accessories application, the cost is lower and it is easier to produce. 2 in 1 or 3 in 1 adapter are manufacturers’ favorite, because profit is higher and mechanical space is bigger. Market will always be drove by supply side in the beginning. Maybe now the market size of accessories is much smaller than smartphone applications, but phone accessories market had dramatically changed this year, especially Apple’s accessories market is booming (Qi wireless charging is another big concealing demand). All you need to do is not to stepping on Apple’s IP (or Patent) traps. Profit from accessories are much more than components.

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