Core Insights - eSIM technology is becoming a key enabler for the Internet of Things (IoT) and is expected to significantly enhance user experience by eliminating the need for physical SIM cards [1][2] - The market for eSIM is projected to grow substantially, with an estimated 1 billion eSIM-enabled smartphones by the end of 2025 and 6.9 billion by 2030 [2] - The eSIM industry chain includes component manufacturers, operators, and application service providers, with several A-share listed companies actively participating in this space [3][4] Market Potential - eSIM technology allows for lighter and thinner consumer electronics, as it does not require a physical card slot [1] - The demand for eSIM is driven by the increasing need for lightweight consumer electronics, wearable devices, and IoT terminals [1][2] - Jupiter Research forecasts that the number of IoT connections using eSIM technology will grow from 22 million in 2023 to 195 million by 2026 [2] Industry Collaboration - Companies like Unisoc, Quectel, and ThinkRace are making strides in the eSIM market, with Unisoc being the first in China to achieve global commercial use of eSIM [3] - Quectel has developed an end-to-end IoT eSIM solution that supports automatic connections in over 180 countries, enhancing operational efficiency and reducing costs [3][4] - ThinkRace is focusing on providing comprehensive solutions for automotive connectivity, leveraging eSIM and 5G technologies to streamline supply chain management for car manufacturers [4] Ecosystem Development - The eSIM industry in China is forming a complete layout across various segments, with companies exploring and refining business models to accelerate eSIM adoption [5] - The collaboration among industry players is expected to enhance the overall ecosystem, facilitating the widespread use of eSIM technology [5]

Group 1: eSIM Technology Overview - Huawei is set to launch a new foldable smartphone that supports eSIM, potentially becoming the first commercially available eSIM smartphone in China [1] - eSIM technology embeds the SIM card directly into the device's chip, eliminating the need for a physical SIM card, thus saving internal space in devices [1] - The number of countries and regions offering eSIM services has significantly increased from 24 in 2018 to 123 by mid-2024, with the number of operators providing eSIM services growing from 45 to 441 in the same period [3] Group 2: Industry Players and Developments - Apple has been a pioneer in eSIM technology, first implementing it in the iPad Air 2 in 2014 and later in the iPhone 14, which eliminated the physical SIM card slot [2] - Xiaomi launched its first eSIM-supported smartphone, the Xiaomi 15 Ultra, in overseas markets in March 2023, while OPPO plans to release its first eSIM smartphones by the end of this year [3][1] - China Unicom has been the most proactive among domestic operators in resuming eSIM services, having reintroduced eSIM for IoT and wearable devices in multiple cities [5][7] Group 3: Regulatory and Market Challenges - The eSIM business was paused in 2023 due to security risks, but China Mobile and China Unicom have since resumed operations, focusing on IoT and wearable devices [5][1] - Analysts indicate that the future of eSIM in smartphones will depend heavily on regulatory policies and the willingness of operators to adopt the technology [7] - The transition to eSIM is seen as a clear trend for smart device manufacturers, but challenges remain due to operator caution regarding consumer network switching and associated security risks [7]

Core Insights - eSIM technology is becoming a key enabler for the Internet of Things (IoT) and is expected to significantly enhance user experience by eliminating the need for physical SIM cards [1][2] - The eSIM market is projected to grow substantially, with an estimated 1 billion eSIM-enabled smartphones by the end of 2025 and 6.9 billion by 2030 [2] - The eSIM industry chain includes component manufacturers, operators, and application scenarios such as mobile devices, wearables, automotive electronics, and IoT terminals [3][5] Market Potential - eSIM technology allows for lighter and thinner consumer electronics as it does not require a physical card slot [1] - The demand for eSIM is driven by the increasing need for lightweight consumer electronics, wearables, and IoT roaming capabilities [1][2] - Jupiter Research forecasts that the number of IoT connections using eSIM technology will grow from 22 million in 2023 to 195 million by 2026 [2] Industry Collaboration - Companies like Unisoc, Quectel, and ThinkRace are actively involved in the eSIM industry, with Unisoc being the first in China to achieve global commercial use of eSIM [3][4] - Quectel has developed an end-to-end IoT eSIM solution that supports automatic connections in over 180 countries, enhancing operational efficiency and reducing costs [3] - ThinkRace provides a comprehensive solution for automotive connectivity, leveraging eSIM and 5G technologies to improve supply chain management and service quality for automotive enterprises [4][5] Business Model Development - The eSIM industry is witnessing collaborative efforts among various players to explore and refine business models, which is expected to accelerate the adoption of eSIM technology [5] - Companies are focusing on backend operational support for eSIM services, including remote configuration and security management [4][5]