An improved headset system for an audio playback system is provided. The headset system is integrated into the audio playback system and comprises a headset, a cord compartment, and a cord retractor. The headset comprises an earbud that is operable to provide audio information and a cord that is operable to couple the headset to the audio playback system. The cord compartment is operable to store the cord in the audio playback system. The cord is also operable to be pulled from the cord compartment. The cord retractor is coupled to the cord compartment and is operable to retract the cord into the cord compartment.