Report shows eSIM already popular in Europe and Asia, analysts say Apple iPhone 14 series may offer eSIM-only version

Anthony Goonetilleke, president of the technology group and head of strategy at eSIM software company Amdocs, told the Wall Street Journal that there are also security reasons why the future is eSIM. For example, when Apple finds a security issue with a phone, it can immediately send a security update to millions of people around the world, which it can't do with a physical SIM card.

In addition, while Apple may launch a USB-C iPhone in 2023, it may also do away with the phone port altogether, offering only MagSafe charging and eSIM-only cards for charging.

eSIM is an embedded SIM card, known as Embedded-SIM. eSIM turns a pluggable physical SIM card into a virtual SIM card that is embedded directly into the device chip, providing proof of identity for each end device and allowing it to access the carrier's network.

eSIM can further save space inside the phone, making room for other components such as the processor and battery. However, eSIM is a bit of a hassle to change phone numbers, requiring a visit to a business office or a swipe of a code from another phone to do so.

Apple filed a patent for eSIM back in 2011, and with the launch of the iPhone XR and XS in 2018, Apple began introducing eSIM to the iPhone. iOS 16 added support for Bluetooth transmission of eSIM between iPhones.