A case is provided for accommodating a portable electronic device and at least one accessory of the portable electronic device. The case provides a holder configured for holding a portable electronic device, the holder having a front panel and a back panel; a retraction system for allowing at least part of a cable portion an accessory to be retracted. Further provided is an ultra thin winding mechanism contained in a enclosure within the case where the audio output is connected via contacts on the back of the spool and contacts on the lining of the case, a button located on the case which engages audio by being adjacent to and in contact with the portable electronic device's audio button, a second button which operates to simultaneously disengage audio and retract the cable, and a microphone installed within the accessory.