Commentary: Apple’s eSIM-only iPhone Hits Snags With China’s Big Three Carriers

The introduction of the eSIM-only iPhone Air in China on October 22 sparked significant interest, marking a potential shift away from traditional SIM cards. China’s three main telecom operators responded by launching offline eSIM activation services, raising speculation that physical SIM cards may soon become obsolete for the current generation[para. 1]. eSIM technology promises a streamlined setup process, where users can activate connectivity simply by scanning a QR code, making device upgrades and international travel more convenient by removing the need for physical card swaps[para. 2].

However, the reality has been less smooth for early adopters. When China’s carriers introduced their eSIM services, buyers found that an iPhone Air could only support two eSIM numbers, and that activation required traveling in person to a carrier outlet in one’s phone number’s region of original registration[para. 3][para. 4]. This inconvenience frustrated users who had expected an easy, modern experience[para. 3][para. 4]. The eSIM’s debut turned out to be more challenging than anticipated, ultimately depressing enthusiasm and contributing to weak market performance for the iPhone Air in China[para. 5]. Despite the iPhone Air selling out in pre-sales, demand quickly diminished, secondary market prices dropped below retail, and foot traffic in stores remained low compared to the excitement seen for the iPhone 17 series[para. 5][para. 6].

Apple has reportedly cut iPhone Air production sharply, with some suppliers anticipating over 80% capacity reductions in early 2026, and analysts noting that Apple’s existing iPhone lineup already meets premium users’ needs, leaving little space for the Air model[para. 6]. Another major factor is the low adoption rate of eSIM in China, where switching from physical SIMs is viewed as cumbersome, despite the technology’s international presence for over a decade[para. 7].

Apple was an early eSIM pioneer, filing a virtual SIM card patent in 2011 and first implementing the tech in iPads in 2014, with industry-wide eSIM technical standards following in 2016. Other manufacturers like Google also catalyzed its spread[para. 8][para. 9]. The eSIM’s advantages include device miniaturization, fewer information leaks, dual-SIM support, and simple carrier switching[para. 10].

Chinese telecom giants have gradually rolled out eSIM services for wearables, with China Unicom launching the TicWatch 2 in 2017 and other pilot programs soon after, but progress stalled in 2023 due to security concerns and a desire for regulatory control[para. 11][para. 12]. Core benefits such as remote provisioning and online management raised concerns about bypassing real-name registration systems, prompting operators to require in-person activation and linking eSIMs to the locality of phone number registration for law enforcement traceability[para. 13][para. 14][para. 15][para. 16][para. 17]. This conservative approach is seen as necessary to guarantee information security while systems mature[para. 18].

By 2025, with security concerns being addressed and demand from devices like the iPhone Air rising, China’s major carriers began reinstating eSIM services and scaling them across regions[para. 19]. eSIMs threaten to disrupt the entrenched ecosystem built around physical SIMs and retail channels, but also offer opportunities to transform carrier business models, with future competition shifting to service quality and reputation rather than sheer channel dominance[para. 20][para. 21][para. 22][para. 23][para. 24][para. 25]. China Mobile’s scale gives it an advantage, but eSIMs could allow China Unicom and China Telecom to innovate and capture market share.

The iPhone Air’s journey in China exemplifies the tensions between technological innovation, regulatory caution, and market adaptation. While early hassles are pronounced, the shift toward eSIMs represents the beginnings of a more open, flexible, and competitive telecom era[para. 26].

The article is written by Yu Dawei, an experienced technology journalist[para. 27], and represents the author’s views[para. 28].