“Each new iPhone is usually good news for mobile network operators,” Alex Webb writes for Bloomberg. “There’s a chance, though, that Wednesday’s arrival of the next generation of iPhones might not be so welcome. That’s because there’s a possibility that Apple could introduce so-called electronic sims, or eSIMs.”
“Even if this doesn’t happen this time around, the shift to the new technology looks inevitable,” Webb writes. “Speculation about eSIMs has been rife since Apple complained to the U.S. Department of Justice that Verizon Communications Inc. and AT&T Inc. were colluding to prevent their introduction. The DoJ is investigating.”
“The classic SIM card is a small chip that’s inserted into the phone manually – making it more awkward to change your mobile network provider. You have to go to a shop to get a new sim or have one delivered physically. The eSIM is virtual, meaning that just changing your phone’s settings would theoretically allow you to switch carriers,” Webb writes. “It’s almost certain that this would accelerate price competition.”
“European chipmaker STMicroelectronics NV dropped a heavy hint about eSIMs at an investor day in May, saying it expected to deploy its own device in a major mass-market smartphone by the end of the year,” Webb writes. “Whether it’s talking about this year’s iPhone will become known on Tuesday, but it’s hard to see how the mobile phone operators can resist this technology for long given its usefulness for consumers. Apple will certainly argue it that way. It’s already used in some iPads, and STMicro supplies an eSIM for the Apple Watch.”
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MacDailyNews Take: eSIMs are so convenient, the carriers won’t be able to fight them off forever.
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