Its Bluetooth aux connector, someone was mentioning these a few pages back, but they were Blackberry branded. Uses Bluetooth to connect audio to a device that has a 3.5mm out socket.
I brought a Blackberry one off ebay and the sound quality was terrible, sounded like a phone call absolutely no bass and the the other frequency's were all distorting as if the levels were up 250%. Completely unlistenable.
Might have just had a bad one but didn't like the way it needed an external power source anyway, just another wire to hide.