At its recent “Far Out” event, Apple unveiled iPhone 14 and iPhone 14 Plus, retaining much of the design of the iPhone 13 — including the bangs notch for the phone’s selfie camera and Face ID sensor. including the bangs notch for the phone’s selfie camera and Face ID sensor. Apple also unveiled iPhone 14 Pro and iPhone 14 Pro Max with a “Lingering Island” pill screen for alerts and background activity, a brighter display and AOD display, an A16 bionic chip, new color options and more.
It’s important to note that Apple’s U.S. iPhone 14 series has become radical, eliminating the physical SIM tray altogether, using eSIM technology, and switching to eSIM cards supported by AT&T, T-Mobile, and Verizon.
Research firm Counterpoint Research today released a report saying that the eSIM-only iPhone 14 series will be the inflection point for eSIM 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 adoption. This example has happened with dual cameras, portrait cameras, and display slots with Face ID. eSIM’s introduction is a turning point for the industry, helping the transition from physical SIM cards to eSIM. eSIM-only iPhones will not only push eSIM into the minds of many consumers around the world but will also drive other OEMs to move to eSIM in the future. .”
Here’s what Counterpoint Research reports.
"Apple has finally released an eSIM-only iPhone! eSIM has been available on smartphones since 2017, but adoption has been slow to grow. The technology was first introduced by Google, with the eSIM-enabled Pixel 2 being part of "Project Fi" that started the technology. However, it was Apple that led the industry and popularized eSIM. Since the introduction of eSIM technology in the iPhone XS, all iPhones launched since then have been eSIM-compatible, and now Apple has launched an eSIM-only iPhone 14 model in the US. Following Apple's lead, other OEMs like Samsung, Huawei and Motorola have also launched eSIM-enabled smartphones around the premium segment. So far, 14 OEMs have launched eSIM-enabled devices.
Why an eSIM-only iPhone is important to the industry Apple is able to define product standards in the industry quite simply. We've seen this happen many times over the past few years. Sure, other OEMs may be able to introduce certain products or technologies faster than Apple, but once Apple uses the technology to sell on the iPhone, it speeds up the adoption of the technology. This example has happened before with dual cameras, portrait cameras, and display slots with Face ID. A similar phenomenon will be repeated with eSIM. Google may have been the first to launch an eSIM-enabled smartphone, while Motorola launched the world's first eSIM-only phone three years before Apple, but with this release we will see an exponential increase in the launch of eSIM in smartphones. We see the launch of eSIM as a turning point for the industry, helping the transition from physical SIM cards to eSIM. eSIM-only iPhones will not only push eSIM into the minds of many consumers around the world, but will also drive other OEMs to move to eSIM in the future.
Why Apple chose eSIM Compared to traditional SIM cards, eSIMs excel in a number of attributes, including configuration, size, flexibility, security, customer experience, and most importantly, cost. From a handset's device design perspective, features such as a thinner, smaller and more power-sensitive device form factor (often embedded in larger machines) are also driving eSIM solutions. Self-configuration is the biggest advantage for communications service providers, driving a better and more loyal customer experience. eSIM's reprogrammable capabilities extend the SIM lifecycle, bringing durability and convenience to customers. From a consumer perspective, the ability to use carrier services flexibly, seamlessly and securely also saves time and costs associated with the process of provisioning or activation. There are rumors that Apple is planning a portless iPhone, and removing the physical SIM card must be a big part of that. I believe the introduction of dual eSIMs in iPhone 13 and now the eSIM-only iPhone 14 are the first signs that a portless iPhone is in development. Ideally, the next step would be to move the functionality from "Apple Silicon" directly to iSIM, which would further save board space and give Apple better control over the SIM. Are operators ready? Mobile network operators have been gradually adopting eSIM capabilities as many face challenges in terms of confidence in the technology, fixed mindsets or cost constraints. As the ecosystem of eSIM-enabled mobile devices becomes more mainstream and consumer awareness grows, 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 MNOs in over 75 countries already support eSIM configuration and management, and there are already a number of MNOs that are ahead of the curve and have an industry-leading profile in eSIM. They support an average of 20 or more devices, including smartphones, smartwatches, laptops and tablets. Most eSIM-enabled carriers are already supporting older Apple devices such as the iPhone 13. With the launch of the eSIM-only iPhone in the U.S., this signals to mobile network operators around the world that eSIM is here to stay!"
