The growing popularity of eSIMs could allow Apple and other phone manufacturers to launch their own cellular networks, according to CCS Insight’s senior analyst, Luke Pearce — as reported by Forbes.
eSIMs replace the conventional SIM card found in phones with a small chip that’s permanently embedded in the phone. Apple launched an eSIM-only version of the iPhone 14 in the U.S. in 2022, a move that has accelerated adoption of eSIMs.
With eSIMs eradicating the need to distribute physical SIM cards and allowing cellular networks to activate customers instantly, a growing number of companies have set themselves up as virtual networks, including Western Union, Revolut and various airlines.
Apple and other smartphone manufacturers could also launch their own virtual networks, says Pearce. Although companies such as Apple or Samsung would still be reliant on the physical infrastructure provided by conventional networks such as Verizon or T-Mobile, by becoming a virtual network they would own the direct relationship with the consumer, posing a threat to those established cellular network giants, he adds.
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