Apple’s eSIM-only iPhone Air signals shift away from physical SIM cards
Analysts say the move will accelerate adoption of embedded SIMs, reshaping device design, carrier interactions and consumer behaviour
Apple on Tuesday unveiled an iPhone Air that relies exclusively on an embedded SIM, or eSIM, a move analysts called “the beginning of the end” for the small removable plastic cards that have identified mobile subscribers for decades. The company said the new model will be sold globally as eSIM-only, joining a trend that has already seen eSIM-only iPhones available in the United States since 2022.
The announcement accompanies Apple’s broader iPhone 17 family rollout, in which the company said some of the new models will be eSIM-only in certain markets while retaining physical SIM trays in others. The decision underscores a gradual industry transition in which Apple’s design choices often influence rival manufacturers and carrier offerings.
A Subscriber Identity Module, or SIM, is a small chip that stores a user’s network credentials and allows a handset to connect to a mobile operator for calls, texts and data. An eSIM performs the same function but is embedded inside a device and can store multiple operator profiles that users can switch between digitally. In recent years many smartphones have supported both a physical SIM and eSIM profiles; Apple’s latest iPhone Air removes the physical option entirely.
Industry analysts said the transition from removable SIM cards to embedded chips will accelerate device redesign and alter how consumers interact with carriers. "In time, expect the SIM tray to disappear altogether," said Paolo Pescatore, a technology analyst at PP Foresight. Kester Mann of CCS Insight said the move “marks the beginning of the end of the physical SIM card” and predicted changing consumer behaviours around switching plans and accessing carrier services.
Proponents point to several practical advantages. Removing a SIM tray can free internal space in a handset, which manufacturers can use for larger batteries or slimmer designs. eSIMs can also reduce plastic waste from disposable SIM cards and simplify the process of changing providers or adding temporary international plans, potentially lowering the risk of unexpectedly high roaming charges.
Market data cited by analysts shows rapid growth in eSIM-equipped devices. CCS Insight estimated that 1.3 billion eSIM-capable smartphones were in use by the end of 2024 and projected that number could rise to about 3.1 billion by 2030. Despite that growth, Apple and other manufacturers will continue to sell devices with physical SIM slots in many countries while the market and regulatory environment evolve.
The shift has implications for carriers and retail operations. Kester Mann said eSIMs could reduce the need for in-person visits to carrier stores for routine tasks such as provisioning or swapping a SIM, though he cautioned that some users—particularly older adults or those less comfortable with digital interfaces—may need clearer guidance and support during the transition.
Technical and market constraints mean the pace of change will vary by region. Some carriers still limit eSIM activation policies, and in certain markets handset makers and operators continue to support physical SIMs to serve customers and regulatory requirements. Apple itself did not remove SIM slots universally: its latest higher-end models will be eSIM-only in some markets but keep physical trays in others.
For consumers, the immediate effects will be practical. Travellers who frequently switch local plans may find it simpler to install local profiles digitally rather than obtain and insert physical SIM cards. Conversely, users who swap devices often via physical SIM transfers or who rely on shops to manage their mobile accounts may need to change habits or seek alternative support channels.
Device makers and network operators will manage the transition at differing speeds as market demand, regulation and technical support adapt. Analysts said Apple’s eSIM-only iPhone Air will likely push rivals and carriers to accelerate eSIM provisioning and customer education, but it does not signal an immediate disappearance of the physical SIM worldwide.
The move reflects a broader industry shift toward software-defined functions in mobile devices and networks, with eSIMs one element of a set of changes that include virtualised network services and remote provisioning. How quickly consumers and markets adjust will depend on carrier policies, regulatory decisions and how effectively device makers and operators communicate changes to customers.