1. Bringing eSIM to the masses
On September 12, 2018 Apple announced that its newest iPhones (iPhone XS, iPhone XS Max, iPhone XR) will ship with eSIM technology. The new iPhones became the first widely marketed eSIM-compatible smartphones ever launched. Thus, generating a wind of change onto the mobile and SIM industries.
Apple is the world’s number 2 smartphone vendor with a 14% market share in 2017 (after Samsung which holds 20% of the worldwide market).
With almost 1.25 billion iPhone sold worldwide between 2007 and 2017, Apple’s flagship smartphone revolutionized the mobile industry with pioneering features that were quickly adopted by competitors, such as full screen phones, fingerprint authentication and the creation of the App economy. As a trend setter, it represents the reference point for innovation and whenever new features launch, customers have quickly learned what they are, and how they work.
That’s why Apple’s eSIM adoption is a true game changer. It will further increase eSIM awareness and adoption among consumers globally – in addition to the iPad Pro and iWatch’s current support of eSIMs.
In terms of customer experience benefits, eSIMs simplify the user journey thanks to the digitalization of the mobile subscription activation of eSIM-ready devices.
Apple has made it clear it will generalize eSIM across all its product portfolio (the iPad Pro being the latest one, since its launch end of October).
2. Democratizing mobile access among OEMs and ODMs
Apple’s eSIM endorsement is a fantastic spotlight for the SIM industry in bringing mobile-connectivity-as-a-feature for original equipment & device manufacturers.
It truly facilitates the pervasiveness of cellular technology into existing non-connected devices such as smartwatches, wristbands, PCs and new categories of devices including headphones, digital healthcare assistants, pet trackers, smart clothing, coffee machines and many other consumer devices.
Thanks to mobile connectivity miniaturization, innovation in device features is enhanced. This means customers can now enjoy extended battery life, reduced thickness & weight in their devices, and improved waterproof capabilities (as the pop-out SIM tray will no longer exist for some secondary devices).
3. Inflecting the SIM industry history
The SIM industry is at a turning point in its evolution: the commitment of a giant such as Apple is a positive growth signal for the eSIM technology market.
In its survey eSIM in the consumer market published in May 2018, ABI Research highlighted that eSIM support from major smartphone vendors such as Apple and Samsung would significantly stimulate massive adoption of eSIM in the consumer space. It also forecast that the switch to eSIM by the first mover would likely pave the way to attract other contenders such as China’s Huawei. After Apple’s keynote, ABI Research revised upwards its consumer eSIM shipment forecasts by 40% to reach more than half a billion units by 2022. Counterpoint forecasts that 24% of all mobile phones will support eSIM technology by 2022.
Logically any new device accepting an eSIM will contribute to increased market traction for SIM card vendors’ products & services, such as GSMA-compliant Remote SIM Provisioning eUICCs platforms.
4. Contributing to the digitalization of mobile operators’ user journey
The launch of eSIM-compliant iPhones has opened up a new era in the distribution model of mobile subscription and connectivity.
Apple’s new iPhone generation supports Dual SIM Dual Standby (DSDS) feature [Dual SIM Dual Standby (DSDS) allows to enjoy two or several different mobile phone subscriptions onto the same phone], including one eSIM and a removable nano SIM (except in China, with a dual nano SIM). In addition to inserting a removable SIM card in a drawer, users can add a new operator in seconds remotely through software. If eSIM and SIM subscriptions are locked onto the same operator for subsidized iPhones, it’s a different story for open market iPhones (i.e. the ones you buy separately from your mobile subscription): two different operators can seat in the same smartphone. It means a first mobile operator can offer its offer via the SIM card slot, and a second one via the eSIM. Paving the way for major competition between operators proposing aggressive offers.
The iPhone’s eSIM features are offered through an iOS software update. But only operators going through a stringent Apple certification process will be able to open up their iPhones with their offer.
After mobile operators have pushed to have eSIM carefully specified by GSMA’s trade body, it’s no surprise to see some of them now considering eSIM with precaution.
But the good news is that ….
Mobile operators can fully embrace the full opportunities offered by the digitalization of the user journey. Many of them have already done so by offering connectivity bundles for adding multiple devices on a single contract, which can help with increasing the revenue per subscription.
This implies that there is a need to fully transform operators’ mobile connectivity lifecycle management policy to address the barriers hindering the massive adoption of consumer eSIM:
- Complex device & customer onboarding
- Multiple purchase channels
- Cumbersome subscription activation
- Limited customer lifecycle management
Source: https://blog.gemalto.com/mobile/2018/11/09/4-ways-apples-esim-ready-iphones-will-change-the-mobile-industry/