We’re at the stage where leaks and rumors are flying fast and furious about Apple Inc.’s (NASDAQ:AAPL) upcoming 10th anniversary iPhone. Some of them — like the idea of a curved OLED display — have people excited. Others — like the possibility of a $1000-plus starting price — less so. But nothing is likely to generate the sort of controversy AAPL stock is courting with the latest rumored change. According to The Wall Street Journal, the iPhone 8 will ditch Apple’s proprietary Lightning cable in favor of USB-C.
What the WSJ Says About the iPhone 8
The Wall Street Journal published a report this morning outlining some of the key changes it feels are coming with the new iPhone.
Most of the detail matches previous speculation on the device. That includes losing the Home button for an all-glass front. It’s also calling for a lofty $1,000 price point for the iPhone 8 — which it speculates may end up going by the name of “10th Anniversary Edition.” The WSJ is also backing the theory that the new iPhone will be equipped with a curved OLED display, similar to that used by Samsung Electronics Co Ltd (OTCMKTS:SSNLF) on its Galaxy S7 Edge smartphone.
One big change suggested by the WSJ is a bombshell: Apple may ditch the Lightning port on the iPhone 8, opting to replace it with USB-C.
Why Would AAPL Court Controversy with the iPhone 8?
Apple has a long history of making controversial changes to its products, especially when it comes to eliminating or replacing ports.
In the past year alone, it has faced backlash over eliminating the long-time standard 3.5mm headphone jack on the iPhone 7. And it’s still trying to appease buyers of the new MacBook Pro, after eliminating all legacy ports and replacing them with the new USB-C. Then there was the last big iPhone port change in 2012, when Apple ditched the 30-pin dock connector it had used with every iOS device since the 2003 generation iPods, rendering millions of docks useless.
Its replacement? The Lightning port.
Ditching the Lightning port on the iPhone 8 would be a long-term win for AAPL fans. USB-C is an industry standard and moving to it from a proprietary connection would mean not having to pay a premium for cables. It would also make Apple’s overall product strategy a lot cleaner. Right now, every new iPhone comes with a USB to Lightning cable for charging — but Apple’s own MacBook and new MacBook Pro have only USB-C ports. So new iPhone buyers can’t connect their new iPhone to their new laptop without first investing in another proprietary Apple cable.
Unfortunately, there are going to be iPhone 7 owners who bought new headphones equipped with a Lightning cable instead of the traditional 3.5mm headphone jack. Those people will not be thrilled that their new headphones — purchased because Apple ditched a standard port — will now be incompatible with the iPhone 8, again because AAPL ditched a standard port. They’ll have to look for an adapter.
There will be a confusing period of overlap. All iOS devices since 2012 have used Lightning and AAPL also uses that port for charging accessories like its latest wireless keyboard and the Apple TV’s Siri remote. It’s also likely that AAPL won’t mess with iPhone 7 design, so the iPhone 7s — which will also release in 2017 — is likely to still have the Lightning connector. More potential for confusion …
However, it won’t be as bad for APPL as the switch to Lightning in the first place. Most manufacturers learned their lesson then and speakers now are primarily wireless instead of using a physical dock, so they won’t be stranded. The iPhone 8 is also expected to support wireless charging and combined with wireless updating and Bluetooth headphones, many users won’t need a physical connection at all anyway.
How Likely Is Apple to Go With USB-C on the iPhone 8?
Most of this information in The Wall Street Journal’s report isn’t new. We were writing about that curved display back in August, for example. However, at this point in the new iPhone’s development cycle, the final design is beginning to be nailed down. Rumors are becoming more concrete as Apple’s supply chain starts ramping up, however, AAPL may yet back down and stick with the Lightning port on the iPhone 8 rather than risk controversy.
If it goes ahead with the change, new iPhone buyers may shrug, some may skip the iPhone 8, or they may hold off on buying to see what the fallout is.
The only outcome we know for certain? Dongle manufacturers have been making out like bandits with the new, all-USB-C MacBook Pro. They should also have a banner year in 2017 with the iPhone 8. Expect it to be a good year for wireless Bluetooth headphone sales as well, as smartphone owners move to avoid those pesky physical connections altogether.
As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.
