Recently, discussions about eSIM have been heating up online. After years of quiet, why is eSIM suddenly “making a comeback”? What kind of impact will it have on the industry? Will it fully replace the traditional SIM card?
This article takes a deep dive into these questions.
01
█ What exactly is eSIM?
eSIM stands for Embedded SIM.
We’re all familiar with SIM cards—short for Subscriber Identity Module—which are chips that store our mobile number information. Every phone has one.
SIM cards come in various sizes: Full-Size SIM, Mini SIM, Micro SIM, and Nano SIM.
Currently, most users in China use the Nano SIM.
eSIM is smaller than the Nano SIM. It’s no longer a physical card but a tiny chip in SON-8 package format, directly embedded into the circuit board of devices like smartphones.
eSIM is programmable. Through OTA (Over-The-Air) technology, users can remotely configure their eSIM, including downloading, installing, activating, deactivating, and deleting carrier profiles.
In other words, users can activate a SIM, choose a plan, or change numbers without visiting a store—highly convenient.
eSIM is considered a virtual SIM technology. Other virtual SIMs include softSIM and vSIM.
Huawei’s SkyTone uses SoftSIM, which doesn’t even require an embedded chip—it’s purely software-based.
02
█ What are the advantages of eSIM?
- Saves internal space
As phones become thinner and lighter, the traditional SIM slot takes up considerable space. eSIM reduces this space usage, easing design challenges and helping make devices sleeker.
Besides phones and tablets, eSIM is ideal for wearables (like smartwatches) and IoT devices, where internal space is even more limited.
- Improves reliability
Traditional SIMs connect via metal contact points and are prone to connection issues. In harsh IoT environments (with vibration, impact), this problem worsens.
eSIMs are soldered directly onto circuit boards, making them more secure and reliable.
- Better waterproofing and dust resistance
With no removable SIM tray, there are no gaps. This helps devices achieve better waterproof and dustproof ratings, expanding IoT applications.
- User convenience
As mentioned, eSIM allows users to activate and manage plans online—no physical cards or SIM ejector tools needed.
Frequent international travelers benefit significantly, avoiding the hassle of switching SIMs.
For IoT, managing physical SIMs across millions of devices is complex. eSIM solves that.
03
█ How has eSIM evolved?
eSIM is not a new idea. It was first proposed by Apple.
In 2011, Apple applied for a virtual SIM patent.
In 2014, it launched Apple SIM, embedded in iPad Air 2 and iPad Mini 3, letting users choose carriers dynamically.
In 2015, Apple and Samsung planned to launch eSIM. Samsung released the first eSIM-supported smartwatch, the Gear S2.
In 2016, GSMA officially released the eSIM standard, supported by 30+ global carriers and major tech companies.
In 2017, Apple Watch 3 used eSIM.
Later that year, Google’s Pixel 2 and Pixel 2 XL became the first eSIM-compatible smartphones.
As eSIM took off abroad, Chinese carriers took notice.
In June 2017, China Mobile unveiled the world’s smallest eSIM NB-IoT module, M5310, during CES Asia.
That year, China Unicom collaborated with wearable brand Mobvoi to release the Ticwatch2—the first Chinese smartwatch supporting eSIM.
In 2018, China Unicom began trialing eSIM dual-terminal service in six cities—starting with Apple Watch, then expanding to Huawei Watch2Pro.
This “one number, dual device” service lets users link devices (phones, tablets, watches) to one number, sharing data and calls while maintaining independent functions.
Unicom also founded an eSIM industry alliance that year.
Also in 2018, iPhone XS supported eSIM with a dual SIM setup (physical SIM + eSIM). In 2022, U.S. iPhone 14 models ditched the SIM tray altogether.
In 2019, China Mobile launched similar trials in seven cities.
In 2021, China’s Ministry of Industry and Information Technology officially called for eSIM adoption in its 14th Five-Year Plan.
In mid-2023, GSMA released the SGP.32 eSIM IoT standard—removing deployment barriers and accelerating eSIM’s ecosystem growth.
By July 2023, Qualcomm, China Unicom, and GSMA jointly launched the “5G + eSIM computing terminal industry cooperation plan,” joined by companies like Huawei, Honor, OPPO, VIVO, Lenovo, ZTE, and more.
Just as eSIM seemed poised to go mainstream, the three major Chinese carriers abruptly paused eSIM services in 2023, citing “system maintenance.”
This led to two years of stagnation.
04
█ Why was eSIM paused? Why is it restarting?
The eSIM revival started on June 18 when Sina Tech reported that all three major carriers would reopen eSIM services in the second half of 2024.
This announcement coincided with the Shanghai MWCS (Mobile World Congress). At MWCS, operators launched several eSIM-enabled products, including Unicom’s eSIM tablets with ZTE and Lenovo.
So why was eSIM halted in 2023?
While eSIM benefits phone makers and users, it’s a double-edged sword for carriers.
Pros for carriers:
- Saves card manufacturing, packaging, logistics, and storage costs
- Reduces in-person service volume, lowering costs
Cons for carriers:
- Weakens control: SIMs are symbolic of the user-operator contract. eSIMs make switching easier, reducing user stickiness and intensifying competition.
Because of this, operators (globally) have been reluctant to push eSIM—unless driven by Apple or IoT needs.
China Unicom was the most proactive due to its early partnership with Apple and Apple Watch eSIM demands.
Another key reason for the pause: security concerns.
Early eSIM processes had technical loopholes. Criminals exploited OTA vulnerabilities to mass-register eSIM numbers using fake IDs—for fraud and spam.
Some turned eSIMs into physical cards and abused them for excess data usage.
Others used eSIMs from foreign carriers to bypass regulation.
Due to these issues, the three major carriers halted eSIM processing in 2023.
So why restart now?
Because eSIM is inevitable.
Wearables and IoT devices need eSIM. Apple’s upcoming ultra-thin iPhone 17 Air will only support eSIM due to space constraints.
Without eSIM service, the iPhone 17 Air wouldn’t work in China.
Security issues are reportedly being resolved, allowing carriers to resume rollout.
Currently:
- China Unicom is leading the way, reactivating eSIM in 25 provinces and launching products like the VN300E tablet and VN010 CPE router.
- China Mobile is following, optimizing systems and preparing 70 million eSIM chips via its IoT subsidiary.
- China Telecom has not resumed eSIM and cites pending upgrades. Rumors link the delay to its satellite communication plans.
05
█ Can eSIM succeed?
eSIM is seeing renewed momentum, but it’s too early to declare full success.
Widespread success depends on collaboration across the supply chain—and user acceptance.
The eSIM ecosystem spans chipmakers, platforms, carriers, hardware integrators, and end users.
Device and chip makers are highly supportive, as eSIM simplifies design and aids miniaturization.
According to ABI Research:
- In 2023, eSIM penetration was 21.3% in smartphones, 5.2% in wearables, 4.3% in tablets, and 1.9% in laptops—still low with room to grow.
Platform providers are onboard, hoping to profit.
Carriers now show clearer intent. Though eSIM weakens their control, open competition is inevitable. Avoiding it won’t help—better service is the key to customer retention.
The growing IoT sector needs eSIM to enable smart connectivity and maximize 5G’s value.
Carriers are building platforms and improving processes, showing their commitment.
User attitude is the wild card.
Truthfully, the benefits of eSIM (size, waterproofing) are not strongly felt by users, who rarely switch SIMs.
The changes in user habits and lack of awareness are significant barriers. Most users don’t know what eSIM is or how to use it.
The industry—especially carriers—must educate and guide users to speed up adoption. This takes time and investment.
Pricing also matters. So far, eSIM plans have been relatively reasonable.
In short, eSIM has high potential. The industry supports it. It offers real advantages and aligns with the digital era.
Compared to China, global eSIM adoption is more aggressive.
- The EU mandates phase-out of SIM trays from 2026
- U.S. carriers widely support eSIM
GSMA Intelligence predicts 1 billion eSIM smartphones globally by 2025, growing to 6.9 billion by 2030.
Jupiter Research estimates that IoT eSIM connections will grow from 22 million in 2023 to 195 million in 2026.
Only time will tell how far eSIM will go.
References:
- Research on eSIM Technology and Industry Development Trends (2024), China Academy of Information and Communications Technology (CAICT)
- eSIM Popularity May Reignite, Shaping a New Era of Universal Connectivity, CICC Research
- Say Goodbye to SIM Cards? Say Hello to eSIM!, Gai Beibei, Communications World
- It’s Time to Rethink eSIM, IoT Think Tank
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