The announcement of Apple’s new iPhone and iPhone 16 Plus demonstrated how the phone manufacturer is turning its focus to the integration of AI to deliver new experiences for users, but also raised questions about the possibility of a “SIM-less” future, as the iPhone 16 marks Apple’s third consecutive eSIM-only phone.
Are eSIMs the future?
Embedded SIMs (eSIMs) are becoming more commonplace in phones, representing a shift in not only how mobile devices connect to networks but also how users are approaching connectivity, as eSIMs come with the functionality to switch between mobile networks without the need to change a physical SIM card.
A webinar hosted by Kaleido Intelligence indicated from its findings that one of the key drivers of growth in eSIM adoptions was “silent roamers,” a term used to refer to a group of people who either connect to Wi-Fi or don’t pay for roaming costs while travelling. The flexibility offered by eSIMs means this group is more likely to adopt the technology.
Apple’s decision to make another eSIM-only phone does raise questions about the future of conventional SIM technology versus eSIM, and whether more phone manufacturers might consider making the switch, or creating more eSIM compatible models. SIM technology should not necessarily be discounted altogether – there is the possibility that both technologies will find a way to coexist. Discussions about whether eSIMs should be regarded as a threat or an opportunity to MNOs are ongoing, and it isn’t necessarily a clear-cut debate.
According to Eric Morhen, COO at Nomad eSIM: “Apple’s decision to produce and sell only eSIM-compatible iPhones for the US market is another step towards a wider global strategy. Apple’s vision is to move away from physical SIM cards completely within the next few product cycles.”
Besides the flexibility offered by eSIMs, other advantages offered by this technology include streamlining the process of connectivity, and sustainability, as it eliminates the need for physical SIM cards which are discarded once done and are adding to a growing pile of electronic waste.
“Such changes align with Apple’s goals of improving user experience, privacy, and being eco-friendly. Removing the physical SIM tray improves the water-tight integrity and saves space and weight in an iPhone,” added Morhen.
Other phone manufacturers looking to eSIMs
“It is likely that one of the major Android providers, such as Samsung, will follow a similar trajectory and also transition to eSIM-only in the near future,” Morhen claimed. Samsung’s response to eSIM growth happened earlier this year, when it announced its new Galaxy S24 series would include built-in eSIM capabilities that could also function as a physical SIM card.
Interestingly, in Samsung’s announcement it referenced AI capabilities, including its AI-powered camera tools. “The launch of the Galaxy S24 series demonstrates our initial step toward a new era of AI phones that go beyond the current smartphone,” said TM Roh, President and Head of Mobile eXperience Business at Samsung Electronics in the press release.
Morhen demonstrated his own faith in eSIMs taking over as he said the introduction of eSIM technology, “makes it easier to switch phone carriers and use global roaming by partnering with telecom companies. This could make managing your networks as easy as choosing Wi-Fi.”
“The complete transition to eSIM globally is not a question of ‘if’ but ‘when’ and Apple is taking the lead in this change,” he concluded.
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