It's no secret that Apple is planning to remove the headphone jack in its upcoming flagship smartphones. A new report from KGI Securities analyst Ming-Chi Kuo, which confirms rumors that Apple will indeed remove the headphone jack in the iPhone 7 to improve the device's water resistance, suggests that Apple is developing earbuds called "AirPods" that will employ its own Bluetooth-like communication chip. Mac Rumors reports: "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. 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. 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."