Apple Inc.’s Ultra Accessory Connector: Don’t Panic! (AAPL)

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One of the biggest PR headaches for Apple Inc. (NASDAQ:AAPL) is connectors. Last year, the company ditched the 3.5 mm headphone jack on the iPhone 7, then eliminated virtually every legacy port in favor of USB-C on the new MacBook Pro. Those moves required a slew of dongles, adapters and connectors, generating a litany of complaints.

Apple Inc.'s Ultra Accessory Connector: Don't Panic! (AAPL)

Source: Amazon

When news broke yesterday that the company was adding support for a new Ultra Accessory Connector — or UAC — panic ensued. Smaller than either USB-C or Lightning, speculation that AAPL might be preparing to switch to UAC quickly spread.

Apple fans (and accessory makers) can take a deep breath. AAPL has confirmed Ultra Accessory Connector is the new name for an old standard, and it’s adding UAC to its MFi (Made-for-iPhone) program at the request of headphone manufacturers.

The Ultra Accessory Connector

Speculation that AAPL might surprise everyone with a new Apple port began with a 9to5Mac report. The site uncovered a developer preview with support for a new Ultra Accessory Connector that “in some cases will replace the use of Lightning and USB connectors.” UAC is smaller than both USB-C and Apple’s own Lightning port.

Naturally, given AAPL’s laser focus on making its devices thinner, that rapidly ramped up speculation the company could be preparing to move the iPhone and iPad to UAC from Lightning.

The Verge was quick to chase down the UAC story. According to its sources, the Ultra Accessory Connector is not part of a plan to introduce a new Apple port. Instead, it’s the official name for an old connector that has been in use by various companies. For example, Nikon Corp (ADR) (OTCMKTS:NINOY) uses it as a connectivity option with digital cameras. The Verge says that headphone manufacturers asked AAPL to add support for the Ultra Accessory Connector in its MFi program.

Why the Panic Over UAC?

AAPL has gained a reputation for ditching existing ports for new versions, especially when that new Apple port is smaller, letting it shrink its devices. AAPL fans have been particularly riled up over the last six months. First came the decision to eliminate the 3.5 mm headphone jack in the iPhone 7 in favor of Lightning or wireless headphones.

Next, when Apple released the long-awaited new MacBook Pro, it replaced all legacy ports with the new USB-C. Those decisions have meant the expense and inconvenience of dongles and adapters to make old accessories work.

And in 2012, AAPL created the mother of all headaches when it switched from the Dock Connector it had used since the launch of the iPod, to the Lightning Port. That move let Apple make the iPhone thinner, but made a decade worth of speakers, chargers and other accessories incompatible with the new generation of devices. Manufacturers had to revamp their product lines to incorporate the new Apple port and consumers fumed.

So you can understand the concern when news of the Ultra Accessory Connector leaked.

UAC Is a Ripple Effect From the iPhone 7 Headphone Jack

At this point, it looks as though the Ultra Accessory Connector is just the latest aftershock from that controversial decision to kill the headphone jack with the iPhone 7. While many iPhone buyers are shrugging and simply going wireless, there is still demand for wired headphones.

And even wireless needs to plug into something to recharge. A growing number of manufacturers are offering USB-C headphones, but that means the cable is incompatible with those Lightning-equipped iOS devices. As The Verge points out, having AAPL support the Ultra Accessory Connector lets those companies stick a  Lightning-to-UAC and USB-C-to-UAC dongle with their headphones to keep everyone happy … except the people who hate dongles.

As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.

Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015.


Article printed from InvestorPlace Media, https://investorplace.com/2017/02/apple-inc-s-ultra-accessory-connector-dont-panic-aapl/.

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