Definitely, the Airpods are connected to your iPhone via Bluetooth.
FAQ Category: Technical Specifications of AirPods
Apple designed the Airpods with a processor inside called the W1. Each Airpods has in this chip which allows it to perform task that the regular wireless headphones are unable to do. The W1 can be viewed as the Airpods’ brain.
Pairing to your iPhone is made easier with the W1 Chip. All you need to do is open the case of the AirPods while it is near to your iPhone. A window will pop up and prompt you to pair the AirPods to your iPhone. This is much easier and faster than searching through the menu to pair the devices. Unlike other headphones, because the Airpods have the WI...
Later this year Beats, owned by Apple, will launch some newer models of the wireless headphones which have the W1 chip. Note that only headphones made by Apple have in the W1 chip.