Apple’s new iPhone Air, with eSIM, faces support limitation in China

Apple unveiled a panoply of updated gadgets at this year’s biggest product launch on Tuesday, with its ultra-thin iPhone Air grabbing much of the limelight.

Customers in mainland China, one of Apple’s most lucrative markets, however, may be less inclined to join the scramble for the new model because of regulatory uncertainties related to the new phone’s adoption of eSIM technology in place of physical SIM cards.

The release of the iPhone Air may be limited or staggered in the country in its initial few weeks or months, as only one of its three main cellular service providers supports the technology. eSIM, which allows for thinner devices, also lets users manage subscription plans or switch carriers more easily.

Chinese regulators need more time to approve and encourage the adoption of eSIM standards, according to analysis by iFanr, a market consultancy and consumer electronics news portal based in southern China’s Guangzhou.

Some observers say the time frame may give a competitive edge to other domestic mobile phone producers. No domestic Chinese mobile phone model uses the eSIM technology yet.

“The consideration [slowing the process] may be that allowing eSIM too quickly may affect the revenues and business models of China’s SOE telecom carriers, if subscribers can easily change plans or switch with just a few taps,” said iFanr analyst Fei Bo.