CD drives worked well for 30 years. Why not bring them back to all our modern devices, too?
Because iPhone sales aren't dropping because of the headphone jack and people seem to be enjoying Bluetooth headphones given how popular those are.
As for sales dropping, smartphone sales do drop. Or at least, the upgrade cycles are becoming longer. It is mostly because phones are becoming "good enough" for many years, but the removal of the headphone jack may have played a tiny part.
Admittedly, far more expensive. But wired headphones come with iPhones