No you cannot use external speakers. I got my iSub and spent three hours trying to get it to work. Sheet in the box says it requires Mac OS 9 Audio Update so I surfed trying to find that. After considerable research I found it's not needed for OS 9.0.4 The trouble shooting sheet said if it doesn't work, perhaps the driver is not loaded. Searched everywhere on apple and could not find drivers for iSub. The Harmon-Kardon website simply refers you to the Apple website. BOTTOM LINE: I finally thought about the external speakers and disconnected and it plays great. Fantastic balance and sound with the internal speakers. Would have been nice for installation instructions to have said "disconnect external speakers".