Apple's introduction of eSIM technology in new iPhones aims to disrupt the telecom industry long-term. The eSIM allows two phone lines - one physical SIM and one digital eSIM that can be activated without a new SIM card. This would allow users to change carriers digitally and give Apple control over partner carriers and tariffs. While Apple's revenue share may not change immediately, the eSIM opens a new revenue stream for Apple to offer its own plans. It also signals more disruption for the telecom industry from new business models as physical SIM cards become optional.

1. A few years ago i read an article about apples plan for an e-sim, i was fascinated by the
prospectus and the possible disruptive effects of such a move by a major technology
player like apple.
The technology means that a user will be able to have two separate phone lines. One will
be via a traditional physical SIM card and the other will be an eSIM or embedded SIM.
The technology will theoretically allow a user to change carriers without having to order a
new SIM card or go to a shop. Instead, they could just sign up digitally.
Indeed apples latest move aims long term to take a piece from the telecom operators pie,
apple brilliantly articulated a strategy to move from a technology company that 10 years
ago sold its phones exclusively in the us through the major telecom operators into a
company that aims to take revenue share from operators!!
Apples plans went from leaking the idea through media channels to prepare the consumer
psych, to introducing an e-sim i watch to test the technology and market appetite to finally
introducing the technology through its new flagship device the iphone xr,xs and xs max.
Apples bold plans wont necessarily mean that apple will start taking direct revenue share
now or even next year!
However apple aims to open a new revenue stream since the eSIM will be controlled by
Apple and it can dictate which carriers to partner with, support and show relative mobile
plans!
Furthermore apple can also offer its own tariffs that are white-labeled by other mobile
providers and charge a "premium for the convenience and ease of activating a new plan.
Although apples latest move is bold and will give mobile operators alot to think about!
The potential for new business models is limited while Apple continues to offer a physical
SIM card slot alongside the eSIM capability. But, if it eventually decides to get rid of the
physical SIM it will have significant implications for how customers buy airtime in the
future.
Thus meantime the e-sim will start a price war in some markets in an already difficult
market that is continually hit hard by disruptive technologies. However long terms its an
ominous sign of disruptions yet to come to the telecom industry.
By : ahmed al-saad