Apple's US iPhone 14 / Pro series will completely cancel the physical SIM card slot

At the recent "Far Out" conference, Apple released the iPhone 14 and iPhone 14 Plus, retaining most of the design of the iPhone 13 including mobile phone selfies Notches for the camera, and a Face ID sensor. Apple also introduced the iPhone 14 Pro and iPhone 14 Pro Max, with a "smart island" pill screen to show alerts and background activity, brighter displays and AOD always-on display, an A16 bionic chip, new color options, and more.

It should be noted that this time Apple's US version of the iPhone 14 series has become very radical, completely canceling the physical SIM tray, all using eSIM technology, and switching to eSIM cards supported by AT&T, T-Mobile, and Verizon.

Research firm Counterpoint Research released a report today that the eSIM-only iPhone 14 series will be an inflection point for eSIM technology adoption. “ Other OEMs may be able to launch certain products or technologies faster than Apple, but once Apple uses the technology to sell on the iPhone, it will accelerate the adoption of the technology. This has happened with dual cameras, and portrait cameras, There is Face ID on the display notch. The introduction of the eSIM was a turning point in the industry, helping to transition from a physical SIM to an eSIM. An eSIM-only iPhone would not only push eSIM into the minds of many consumers around the world but also Push other OEMs to switch to eSIM in the future.”

Here's what Counterpoint Research reports:

Apple finally released an eSIM-only iPhone! There have been smartphones with eSIMs since 2017, but adoption has been growing slowly. The technology was first introduced by Google, and the eSIM-enabled Pixel 2 became the start of the technology as part of "Project Fi." However, it was Apple that led the industry and popularized eSIM. Since the introduction of eSIM technology in the iPhone XS, all iPhones released since then are eSIM compatible. Now, Apple has launched eSIM-only iPhone 14 models in the US.

Following Apple's lead, other OEMs such as Samsung, Huawei, and Motorola have also launched eSIM-enabled smartphones in the premium segment. So far, 14 OEMs have launched eSIM-enabled devices.

Why eSIM-only iPhones matter to the industry?

Apple can easily define product standards in the industry. We've seen this happen several times over the past few years. Of course, other OEMs may be able to launch certain products or technologies faster than Apple, but once Apple uses the technology to sell on the iPhone, it will accelerate the adoption of the technology. This example has happened with dual cameras, portrait cameras, and display notch with Face ID.

A similar phenomenon will be repeated on eSIM. Perhaps Google was the first to launch an eSIM-enabled smartphone, and Motorola launched the world's first eSIM-only phone three years before Apple, but with this launch, we'll see eSIM in smartphones The launch has grown exponentially.

We see the launch of eSIM as an inflection point for the industry, helping to transition from physical SIM to eSIM. An eSIM-only iPhone will not only push eSIM into the minds of many consumers around the world, but it will also drive other OEMs to switch to eSIM in the future.

Why Apple chose eSIM?

Compared to traditional SIM cards, eSIMs excel in several attributes, including configuration, size, flexibility, security, customer experience, and most importantly, cost. From a device design perspective for mobile phones, eSIMs are also driving eSIM solutions due to thinner, smaller, and more power-sensitive device form factors (often embedded in larger machines). Self-provisioning is the biggest advantage for CSPs, driving a better and more loyal customer experience. The re-programmability of the eSIM extends the life cycle of the SIM, bringing durability and convenience to customers.

From a consumer perspective, the ability to use operator services flexibly, seamlessly, and securely, also saves time and costs associated with configuration or activation processes. Apple is rumored to be planning a portless iPhone. Removing the physical SIM card must be an important part of this. I believe the introduction of dual eSIM in the iPhone 13 and now the eSIM-only iPhone 14 are the first signs that a portless iPhone is in the works. Ideally, the next step would be by moving functionality from "Apple Silicon" directly to the iSIM, which would further save board space and give Apple more control over the SIM.

Are operators ready?

Mobile network operators have gradually adopted eSIM capabilities as many operators face challenges with technology confidence, fixed mindset, or cost constraints. As the eSIM-enabled handset device ecosystem has become mainstream and consumer awareness has grown, many mobile network operators have integrated eSIM technology into their device networks.

The shortage of available semiconductors for physical SIM cards is another driver of eSIM development. While the semiconductor shortage has improved in many ways, the SIM card situation has not fully recovered.

More than 200 leading mobile network operators in more than 75 countries already support eSIM configuration and management, and some mobile network operators are already one step ahead in eSIM and have a leading image in the industry. They support an average of 20 or more devices, including smartphones, smartwatches, laptops, and tablets. Most carriers that support eSIM devices are already supporting older Apple devices like the iPhone 13. The launch of the eSIM-only iPhone in the US, signals to mobile network operators around the world that they are ready, and the eSIM is here to stay!