As part of Apple’s new iPhone 14 launch this week, the company mentioned in a sentence and a half a huge move that could affect the entire market. Apple has announced that it will remove the SIM card tray for iPhone 14 models in the United States. There were many rumors on the subject for a long time and this is how the company decided to act, even if as mentioned currently not all over the world.
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The new devices that will be sold in the United States only support the eSIM that is embedded in the device during production. Thus, through software, each user can decide that he goes from operator to operator whenever he wants with the push of a button, without the need for the familiar plastic card. Apple already supports the eSIM option since the iPhones launched in 2018, as well as in its smart watches.
Easy transition between networks
Perhaps most of all, the launch expressed what everyone in the industry knows but is afraid to say out loud: Apple has once again shown operators who sets the rules in the mobile market. In other words – Apple is once again telling the operators that for it they are iron companies and nothing else. From the point of view of the operators in Israel, the announcement has one meaning: erosion of revenues. It’s not for nothing that they do everything to delay the entry of the eSIM. Apparently, as long as a plastic card has to be changed when moving from one company to another, there is a chance that users will delay the decision and may not abandon the competitors.
Let’s take for example a user whose area does not have optimal reception. Instead of calling and trying to figure out which company that does have reception and should switch, he can switch in seconds and try out a new network, and decide which is better for him. The same goes for the fifth generation. A customer who is important to receive fifth generation service at home can do so in the same way. In the US, the operators sell 5G services as home internet. This does not happen in Israel, but it is not impossible that there will be those who will give up the internet package when they have a fast and efficient connection through the smartphone. All this places an unusual burden on the operators, who will now be required to prove that their network is better.
And that’s even before we talked about the prices. A customer can switch from company to company easily and without calling a service center and finding out what the package prices are and waiting for a SIM to be sent to him. In the new state of affairs, the user will be able to decide in a second who is cheaper for him, determine the characteristics of the package, and that’s the end of the story.
Erosion of income from migration
In addition, one of the most important sources of income for the cellular companies is the international roaming services. In Israel the operators make a fortune from the service. They buy capacity at zero prices and sell it at tens if not hundreds of percent profit. In the last year or two, Israelis have discovered the eSIM abroad and many have stopped buying roaming services from the operators in Israel. It is easy, it is simple and it is much cheaper. Globally, the operators have already realized that there is no point in resisting the trend and therefore the supply and competition are very large. This is in contrast to the operators in Israel who do everything to try and postpone the end.
Another thing that may sound simple but relates to the last point: the new iPhone also supports satellite communication. This is no longer a gimmick. In the sixth generation, which is still far away, we are already talking about satellite communication, and in the world we are already talking about satellite service as an alternative to cellular networks in roaming, as well as for providing communication in places where there is no reception. This makes the package of the new iPhone much more interesting and attractive. Is this another step in the pressure exerted by Apple on the cellular operators? Everyone has their own opinion on the matter.
Makes room
As mentioned in the market it was already estimated that Apple is planning the move, and the question was mainly when. At first it was estimated that the company would not do it in one fell swoop, but would launch the eSIM version of a new model, while maintaining a model with a physical option. Now, it is clear that Apple has chosen to act decisively on this feature and in the United States there is no other option.
When you ask why Apple took this step – it can be assumed that there are two main possibilities: First, the very act of giving up the physical SIM card slot saves space on the device and this has two possible advantages. One is that this frees up more space for future hardware that they may want to put in – there is more space inside the device and thus it will be possible to integrate new technologies. A second option is to make the iPhone thinner and more elegant, because you remove a component that “fattens” it. There are those who look at this move similar to the removal of the headphone jack that used to be on the devices, which allowed for new developments and different sizes of the device.
A headache for consumers
Similar to removing the headphone jack, some see this as a major headache for many consumers. Experts around the world point out that Americans may be less affected by the king, as they tend to fly mainly within the borders of the United States. But users around the world who fly a lot from country to country will notice a new problem that will arise for them – there are consumers who prefer to purchase a local SIM as soon as they arrive at their destination and this is an easy and convenient way to avoid roaming fees that can add up. In the new iPhone this will not always be possible. Of course, the eSIM technology already exists in many places around the world. But not every country and not every provider has support for the new technology. Therefore, those who fly between countries with such a device will have to pay more attention.
An Israeli point in Apple’s presentation at the launch is that Cellcom was chosen to appear in the list of operators from around the world. This is probably thanks to the increased sales of the Dinamica chain that it owns.
ID: iPhone 14 Pro
What’s new: The company’s independent A16 Bionic processor, a Dynamic Island feature that turns the device into a control tool, a purple device
Security features: The device will allow signals to be sent via satellite communication in times of distress, and will detect if you were involved in a car accident
price: From $999 for the Pro version, from $1,099 for the Pro Max version
Price in Israel*: From NIS 4,200 for the Pro version, from NIS 5,000 for the Pro Max version
Date of arrival in Israel*: September 22
*Five factors in the market, revealed in Globes