A portable audio unit has a main unit, such as a CD player or tape recorder. The main unit is connected to a control unit by a cable. Audio and control signals are transmitted by the cable. The control unit has a connector for an earphone. Audio signals are transmitted by the cable from the main unit, to the control unit and to a connected earphone. Control signals are transmitted from the control unit to the main unit for controlling functions such as volume, power, tape-play, etc. The main unit has a built-in winder that stores and retrieves the cable. The control unit may be attached to the main unit when the cord is wound up and stored. With the control unit attached and the cable stored in side the main unit, the portable audio unit may still be operated by the control unit which forms a built-in control panel. With the cable extended, the control unit may be used as a remote control permitting the main unit to be placed in a handbag or pocket. In a portable audio unit having a separate remote control, a control panel is included in the main unit. The present invention avoids the need for the control panel because the control unit doubles as a control panel. Cost, size and complexity of the portable audio unit are thereby reduced.