Apple's eSIM strategy delayed in China

Apple is preparing to launch its newest smartphone, the iPhone Air in China, with pre-orders set to begin on October 17. Tim Cook confirmed the launch on Chinese social media platform Weibo during his visit to the country. Notably, the release had been delayed earlier due to regulatory hurdles surrounding eSIM technology, which required approval from the country’s telecom authorities.

The iPhone Air is Apple’s slimmest smartphone to date (measuring just 5.6mm in thickness), and it is the first iPhone in China to rely entirely on eSIM technology. Unlike traditional models, it does not include a physical SIM card slot. According to the company, this allows users to switch carriers more easily without needing a physical SIM card and aligns with a global trend of adopting eSIM-enabled devices. However, this became a major hurdle for the launch, as regulatory limitations had previously prevented Apple from officially releasing the phone in China, since the majority of telecom providers in the country were not authorized to support eSIM. As a result, Chinese consumers would not have been able to use the device across all networks, causing a significant delay in its launch.

But now, the company is set to launch its thinnest phone in the country, as regulators provide approval for eSIM services for China’s three major telecom operators, including China Mobile, China Telecom, and China Unicom. Previously, only China Unicom had been authorized to provide eSIM services. And with all three carriers now cleared to support eSIM, Chinese consumers will have greater flexibility in choosing network providers while using the new smartphone.

Notably, the iPhone Air (which weighs around 165 grams) is priced at 7,999 yuan (~ $1,122) for the base 256GB model. It features a 6.5-inch Super Retina XDR OLED display with a resolution of 2736×1260 pixels and ProMotion technology supporting adaptive refresh rates up to 120Hz. Powered by the A19 Pro chip with 12GB of RAM, the device offers storage options of 256GB, 512GB, and 1TB. On the camera’s part, the phone includes a 48MP main camera and a 12MP front camera.

The development comes as Apple continues to face challenges in China. Last year, the company experienced its biggest annual decline in the market, with shipments dropping 17% from 51.8 million units in 2023 to 42.9 million in 2024. Its market share fell from 19% to 15%, marking its worst performance since 2016. Actually, a prominent contributing factor included the lack of AI capabilities in Apple’s latest iPhone models, while competitors like Huawei and Vivo offered AI-integrated devices. Despite this, the Tim Cook-led company’s revenue rebounded in the third quarter of 2025, rising from $14.73 billion in the same period of 2024 to $15.37 billion. However, the company still faced challenges in the country. In July 2025, Apple closed one of its retail stores in Dalian City, marking the first time it has shut a store in China. The closure was due to lower consumer spending and other big stores leaving the mall.

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