Apple CEO Tim Cook Announces The iPhone 6

It may not have made a huge impact at Apple Inc’s launch on Thursday October 16; however, the Apple SIM is making a huge impact now. Apple SIM will provide consumers of the cellular-enabled iPad Air 2, with flexibility and choice of mobile service provider.

With the Apple SIM it will no longer be necessary for consumers to be tied to long-term contracts with one mobile provider. Switching mobile carriers will be as simple as selecting a new provider from a menu option on their iPad. Apple has stated on their website “The Apple SIM gives you the flexibility to choose from a variety of short-term plans from select carriers in the U.S. and UK right on your iPad. So whenever you need it, you can choose the plan that works best for you — with no long-term commitments. And when you travel, you may also be able to choose a data plan from a local carrier for the duration of your trip.”

The Apple SIM will work initially with T-Mobile, Sprint and AT&T in the U.S. and EE in the U.K. While other wireless carriers will be negotiating directly with Apple to be included on the list of Apple SIM providers. This will see Apple in the power seat.

Mobile technology analyst for IHS Technology, Ian Fogg says, “With this initial iPad launch, Apple is testing the business model and technology of software controlled multi-operator SIM cards”. The big question is whether Apple will bring the Apple SIM to iPhone next. Fogg, predicts Apple could extend the Apple SIM offering in several ways:

 “Extend Apple SIM to the iPhone. IHS forecasts Apple will be the second largest handset maker by shipment volume in 2014. If Apple offers Apple SIM on the iPhone because of this scale it will have enormous impacts on the business models of mobile operators.

“Make Apple SIM the sole embedded SIM option on iPhone or iPad. Apple may choose to remove the SIM card slot entirely, and embed Apple SIM in future iPhones or iPads as the sole way to connect to mobile networks. In this event, operators will no longer be able to offer their own SIM cards to iPad or iPhone owners.

“Lock consumers more into Apple-brand devices. If users have an Apple SIM, which either only works with Apple devices, or is non-removable, then it is much harder for users to switch to a Samsung, Sony, Huawei, or HTC cellular device because the user will need to source a new SIM card for their new device. This will reduce churn from Apple device ownership.”

Mobile carriers may be open to experimenting with Apple SIM for the iPad, however they are likely to be more cautious of loosening up the stronghold they have on their mobile phone consumers.

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