Migration to embedded SIMs unclear in handset market

Migration to embedded SIMs unclear in handset market

The next five years will see around 100 million embedded SIMs shipped for use in cellular machine-to-machine (M2M) communications, according to findings from IMS Research.

However, its latest report indicated that the future of embedded SIMs is still in question in the smartphone market as some operators are opposed to the technology.

Alex Green, director of IMS Research's team tracking the smart card market and one of the report’s authors, said that the longer cycle of M2M devices when compared to handsets, means removable SIMs are more appealing to smartphone operators.

An embedded SIM in a mobile handset would create problems in the current smartphone market as manufacturers have dedicated a great deal of time to the creation of Micro SIMs and now Nano SIMs.

"The traditional SIM card format, known as 2FF, is sold by the billion at present, providing for very low prices due to volumes of scale," the expert added, meaning many smartphone operators are unlikely to make the move to embedded SIMs in the near future.