Core Insights - The three major telecom operators in China, China Mobile, China Unicom, and China Telecom, have been approved to conduct commercial trials of eSIM technology nationwide, allowing users to register without a physical SIM card [1][5] - Apple is set to release the iPhone Air, the first smartphone in China to support only eSIM, on October 22, with pre-sales achieving over 100 million yuan in just one second [1][4] - Domestic eSIM applications in smartphones are in the early stages, with previous efforts having faced various phases of exploration and stagnation [5] Telecom Operators' Strategies - China Mobile is focusing on the localization of eSIM chip technology and aims to develop more secure and functional eSIM terminals [7] - China Unicom has been a pioneer in eSIM technology since 2015 and has adapted 75 terminal types, serving over a million users [7][8] - China Telecom plans to collaborate with industry partners to build an open and cooperative eSIM ecosystem [8] Chip Manufacturers and Supply Chain - Unisoc is the first domestic chip manufacturer to achieve global commercial use of eSIM, with products compliant with GSMA standards [5] - The supply of domestic eSIM chips is contingent on the clarification of business models and partnerships between telecom operators and smartphone manufacturers [7] - Companies like Huada Electronics and Changdian Technology are actively developing technologies to capture market opportunities in the eSIM sector [6][7] Market Potential and Future Developments - The eSIM market is expected to grow significantly, with manufacturers and service providers keenly observing the evolving landscape [6][9] - Apple plans to introduce an eSIM Quick Transfer feature in the Chinese market, indicating a push towards enhancing user experience [9]

Core Viewpoint - The approval of eSIM commercial trials by China's three major telecom operators marks a significant step towards the widespread adoption of eSIM technology in smartphones, with the iPhone Air leading the charge in the domestic market [1][2]. Group 1: eSIM Commercialization - China Mobile, China Unicom, and China Telecom have received approval to conduct eSIM mobile phone commercial trials across all 31 provinces in China, allowing users to register without a physical SIM card [1]. - The iPhone Air, set to launch on October 22, is the first domestic smartphone to support only eSIM, achieving over 100 million yuan in sales within one second during pre-sales [1]. - Domestic manufacturers like Huawei and OPPO are expected to follow suit by launching their own eSIM-enabled smartphones [1]. Group 2: Supply Chain and Technology - The supply of domestic eSIM chips is still in the early stages, with companies like Unisoc and Tongfu Microelectronics being key players in the chip supply chain [1][3]. - Unisoc has developed eSIM chip technology that is compatible with over 400 global operators, but the final selection of domestic operators and the business model remain unclear [1][5]. - The eSIM chip supply process is hindered by the need for clarity on cooperation between mobile manufacturers and telecom operators, as well as the establishment of relevant protocols [5]. Group 3: Industry Development and Future Prospects - China Unicom has been a pioneer in eSIM technology since 2015, with over 75 compatible devices and a user base exceeding one million [6]. - China Telecom aims to collaborate with industry partners to build an open and cooperative eSIM ecosystem, promoting innovation in terminal forms and service models [6]. - The introduction of eSIM Quick Transfer functionality by Apple in the Chinese market indicates a growing trend towards eSIM adoption, which could reshape the domestic communication industry [6].