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.
Do you have questions about the biggest topics and trends from around the world? Get the answers with SCMP Knowledge, our new platform of curated content with explainers, FAQs, analyses and infographics brought to you by our award-winning team.
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.
People walk past an Apple store in Beijing on August 11. Photo: EPA alt=People walk past an Apple store in Beijing on August 11. Photo: EPA>
Apple has said that only one carrier, China Unicom, will support the eSIM for the iPhone Air in mainland China, without saying when support will be available.
China Mobile, the dominant service provider with the largest cellular subscriber base in the country, is yet to announce its support for eSIM, as is China Telecom, the second-largest carrier by user base.
Uncertainties surrounding wider eSIM support may dampen sales and, therefore, iPhone Air’s initial shipment in China may be slow, Fei said.
The Post also reported this week that shop assistants at some Apple-authorised resellers in Foshan and other major cities in southern Guangdong province said they had not received training regarding eSIM support. In comparison, staff at European resellers were asked to complete a relevant course, MacRumors, an Apple news aggregator, reported last week.
Story Continues
The Post has reached out to Apple for comment.
This is not the first time that an Apple product’s cachet is not immediately or widely available in mainland China.
In previous years, complex regulatory and compliance issues delayed Apple’s plan to bring new devices and functions into the country, from Apple Pay to the Apple Watch on-wrist electrocardiogram.
Features also not available in mainland China include emergency messaging via satellite, Apple’s TV streaming services and digital multimedia app iTunes, along with other features that distinguish Apple from the competition.
The iPhone maker is also stuck in its high-stakes bid to launch Apple Intelligence in mainland China, one of the new drawing cards key to spurring sales, as Apple users in America and elsewhere have already been utilising the artificial intelligence functions.
Bloomberg reported last week that the roll-out of the Apple Intelligence version for mainland China that conforms to local law and demands has been delayed until the end of the year, much later than Apple’s original target.
Complex approval and delayed or limited availability are taking a lot of the “oomph” factor off Apple in China, allowing domestic producers to fill the void, as they are sseen as havingaccess to easier regulatory approval and wider carrier support, Fei said.
Chinese rivals such as Huawei and Xiaomi have already introduced various AI features in their smartphones and are also revving up the development of eSIM models.
Amid these headwinds, observers see weak sales performance for Apple in China.
While Apple reported a sales boost there in the second quarter, helped by Beijing’s consumer subsidies that also benefitted its rivals, US-based technology research firm IDC has forecast a 1.9 per cent decline in iPhone shipments in China this year owing to intensifying competition.
Counterpoint Research senior analyst Ivan Lam also said that in the second half of 2025 “iPhone sales in China will stumble amid weak consumer spending … and tepid iPhone 17 upgrades won’t spark demand”.
Lam also pointed to efforts by domestic rivals, especially Huawei, to “aggressively” target the high-end segment at the cost of Apple.
Huawei remained China’s top smartphone brand in the second quarter, according to Counterpoint. Its sales saw a 12 per cent year-on-year jump during this period.
Just days before Apple’s Tuesday event, Huawei announced a second-generation trifold smartphone with three screens as its latest flagship product.
This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP’s Facebook and Twitter pages. Copyright © 2025 South China Morning Post Publishers Ltd. All rights reserved.
Copyright (c) 2025. South China Morning Post Publishers Ltd. All rights reserved.