Apple is facing potential delays for the iPhone Ultra launch in mainland China due to its reliance on eSIM technology. The device completely removes the physical SIM card slot to accommodate a larger battery, a periscope telephoto lens, and an advanced cooling system.
Mainland China currently restricts eSIM usage in smartphones, allowing it only for wearables and IoT devices. Regulators maintain strict oversight regarding real-name registration, anti-fraud measures, and network security, which prevents the widespread adoption of eSIM-only phones.
Apple is currently negotiating with China Telecom, China Mobile, and China Unicom, as well as the Ministry of Industry and Information Technology. The integration of local real-name activation, anti-money laundering protocols, and cross-province network verification requires significant backend modifications.
The delay in regulatory approval and end-to-end testing may cause the iPhone Ultra to miss its global launch window in the Chinese market. Analysts suggest this could impact Apple's quarterly revenue and potentially drive high-end consumers toward local Android foldable or flagship devices.
Apple is evaluating options, including seeking a special green-channel approval or considering a hardware redesign for the Chinese market. However, any hardware changes would cause significant disruption to the global supply chain, leaving consumers facing potential shortages.
