What happens when you play a lossless song from an iPhone with Bluetooth connected?
I know that Bluetooth can't play lossless quality, but does that mean there is silence? Or does it play with a lower quality version? If so what level of quality?
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Bluetooth connections don’t support lossless audio, but lossless audio will play back normally on Bluetooth speakers and headphones. In Apple Music specifically, you can expect playback in "High Quality" (AAC 256 kbps).
About lossless audio in Apple Music - Apple Support