There wasn't a single source for you to share both the audio and mic inputs between two headsets, or the capability of capturing the audio of both the mic and the speaker from the iPhone. Now there is.
Why, you ask, would I want to do this, and why is this on a photo forum? Because when I am on the phone with a client, and I need to capture a conversation about specifics and I can't take notes because I am driving, or shooting, or otherwise just can't write, simply hitting the 'record' button solves that problem, ensuring that I don't miss a point.
I was contemplating ways for me to splice into an Apple iPhone headset to record conversations I was having on my phone. Because of the specialized jack - and the fact that it's recessed - made considerations for how to do this difficult. Then I realized that Michael Bass Designs does custom cords. An e-mail or two to him later, and the cord has arrived in my mailbox - perfectly created.
Now, I can plug my standard iPhone headset in, use the headset's inline mic and listen to the conversation in both ears, and I can plug into the cord a standard mini-stereo cord with left and right channels, and output both what I am hearing on my headset and what I am saying on the other, to separate channels.
Not content with just that, I wondered - what if I wanted to play audio direct into the iPhone? No problem - the signal goes both ways, so now if I want to patch an audio signal straight into my phone, I can, from any device.
Further not content, what if I wanted to use two headsets on my iPhone? A seperate Y splitter was created, so now I can not only have two people with headsets on the phone (avoiding the problem of a too-quiet speakerphone or loud ambient noise) but I can record the entire conversation.
Devices for land-line phones are sold by Radio Shack, (like this one), but on most cell phones, you're SOL. If you want one yourself, it'll set you back about $100 or so, because he has to not only buy an Apple headset to splice into, but the Y connector and jacks, and do all the custom, one-off work just for you. Check his site here for more details.
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