Apple might abandon the standard 3.5mm headphone jack on the iPhone 7 in order to slim down the phone and make it 1mm thinner than the 7.1mm thick iPhone 6s. Audio will instead be provided through the lightning connector.
The report, citing a “reliable source,” claims the new same-sized Lightning connector will support Lightning-equipped and Bluetooth headphones, and have a DAC, or digital-to-audio converter, for backwards compatibility with wired headphones using standard 3.5mm stereo jacks, obviously you would need a connector.
There are a few companies making audio headphones that utilize the Lightning Connector, but there aren’t that many on the market. Philips has the best portfolio with the Fidelio M2L and Fidelio NC1L. It is very likely that more companies will invest in this space, given that Apple is moving in this direction with all of their future products.