Component Shortage: Will it drive the eSIM migration?

The COVID-19-led semiconductor shortage disrupted the supply
chains of several industries. The shortage also accelerated lead
times for key components such as chipsets, DDIs & PMICs that
power all electronics around us. While the auto sector was
heavily affected, telecom operators were also struck due to the
lack of physical SIM cards as SIM plants shifted their production
to higher-value technologies.


With no significant CapEx investment in mature nodes, SIM
shortage means telcos cannot activate new subscriptions,
potentially losing customers and market share. And while mobile
network operators have been resistant to moving to eSIM, the eSIM
is still gathering pace. Premium flagship smartphones from
Samsung and Apple come with one physical SIM slot and one eSIM.
Even the latest iPhone 14 series in the US ditches the physical
SIM slot altogether and comes with eSIM-only capabilities.


With component shortages expected to continue until 2023, how do
the mobile network operators reorganize their supply chain and
forecast SIM needs in advance? We discuss all this and more in
the podcast.


In the latest episode of ‘The Counterpoint Podcast’, host Peter
Richardson is joined by Counterpoint’s Senior Analyst William Li,
and Olivier Leroux, President and Founder of Oasis Smart-SIM to
talk about how the telecom industry is dealing with disruptions
due to semiconductor shortage. We also discuss the real impact of
SIM shortage and the development of eSIM to mitigate some of
these issues.



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