Why Apple’s iPhone Air Marks a New Era for eSIM

September 2025

Telecoms & Connectivity

Ardit Ballhysa

Senior Research Analyst

It was only a matter of time before Apple announced an embedded SIM (eSIM)-only iPhone worldwide, following its announcement of the US-exclusive eSIM-only iPhone 14 line-up in September 2022. Apple announced the iPhone Air during its annual September event, named “Awe Dropping." This event introduced the latest iPhone line-up, alongside the new iPhone Air, the next iteration of AirPods Pro, and the next series of Apple Watch. 

Source: Apple

The iPhone Air adds a new form factor into Apple’s iPhone line-up; adding some much-needed differentiation after almost a decade of minimal changes to the iPhone’s design. Apple’s decision to make only its new iPhone Air model eSIM-only, however, calls into question carrier readiness for eSIM-only smartphones. It also raises the question of Apple’s motives behind releasing the iPhone Air.

During its keynote, Apple noted that eSIM is easier to use, has better security, and saves space inside the device - all of which are true. eSIM achieves this as, unlike a physical SIM card, it is digitally built directly onto a device’s hardware. eSIM offers protection against lost or stolen physical SIMs, which can then be used by fraudsters to receive important One-Time Passwords (OTPs) to gain unauthorised access to sensitive data and accounts; protecting, against Account Takeover (ATO) fraud.

Considering the advantages eSIM poses over a physical SIM, why wouldn’t Apple make the entirety of its iPhone line-up eSIM-only worldwide, too? Juniper Research believes there are two key reasons; firstly, not all carriers offer eSIM capabilities at present. According to Apple, over 500 networks offer support for eSIM worldwide, with the GSMA expecting most operators globally to support eSIM by 2028. According to our data, less than a third of all smartphones shipped in 2024 offer eSIM support and there is currently no strong incentive for many carriers around the world to make eSIM an available offering to their customers. 

Secondly, many consumers do not know what eSIM is; this being particularly true for older consumers and smartphone users in less developed countries.

With the iPhone Air, however, Apple is hoping to change this by encouraging carrier adoption of eSIM, with carriers subsequently left with the responsibility of educating their consumer base. Apple will stand to benefit from more carriers offering eSIM; as consumers will be likely to upgrade their iPhones more frequently owing to the convenience offered by this technology. eSIMs provide consumers with instant access to a carrier’s network upon taking out a plan, without the need to physically pick up a SIM card or wait for one in the post.

An eSIM-only iPhone also benefits from freed up physical space within the device. This additional space can be used for larger batteries, as with the Apple iPhone Air. The extra space can also be used to incorporate additional components, which Apple may look to do in future iterations of its Pro line-up once this line-up is standardised globally. Larger batteries can provide better battery life to enable more power-hungry chipsets, whereas additional components could potentially fuel new use cases for Apple’s smartphones to further differentiate Apple from other smartphone OEMs.

There is a possibility that Apple’s plan to push eSIM support globally may not work. If it doesn’t, then the iPhone Air underperforming due to low sales becomes a real risk. Apple strategically chose not to use its lower-end iPhones for eSIM-only, as they often have larger sales volumes. This is primarily due to their lower price point, with previous generation base iPhone models still available to consumers at a discounted price. Apple also made the right decision to not make its two Pro models eSIM-only, as they are the top two selling iPhones. Doing so could potentially have lost them sales revenue, should consumers around the world reject an eSIM-only iPhone.

Apple’s ulterior motives aside, trying to push the industry forward by establishing eSIM as the default in smartphones is commendable. Not only do physical SIM cards adversely affect the climate by contributing to plastic waste and landfills, they can also pose a security risk for individuals who lose their SIM cards or have them stolen.

Proportion of Smartphones That Are eSIM-capable, 2020-2025

Source: Juniper Research

Juniper Research forecasts that the proportion of cellular smartphones that are eSIM-capable will grow from 45% in 2025 to 58% in 2028. A successful iPhone Air may push this growth even further, especially as other OEMs follow suit to gain the advantages eSIM offers on their own smartphones. Further, Apple could standardise eSIM across all its iPhones when carrier adoption of eSIM reaches maturation in most parts of the world; bolstering the eSIM market even more.

Ardit works within the Telecoms & Connectivity team; providing insights and strategic recommendations on current and future markets within the telecoms industry. His primary area of focus is on operator and CSP strategies. He previously worked at GlobalData for four years where he covered the technology and telecommunications industries, and prior to that, worked at Gartner for two years.