Why did Apple launch a SIM card for its iPads?
A closer look at Verizon's wireless segment's financials (Part 5 of 12)
Apple wants to make its iPads more attractive
Recently, Apple (AAPL) announced that its newly launched iPad Air 2 and iPad Mini 3 will come with a SIM card. The SIM card allows users to switch between carriers through a user-friendly interface from the iPad itself.
Currently, AT&T (T), T-Mobile (TMUS), and Sprint (S) decided to support Apple’s new SIM card. However, Verizon (VZ) isn’t supporting it. During its 3Q14 earnings conference call, Verizon’s management mentioned that it has its own SIM card. Verizon is putting its SIM card in the devices. As a result, it doesn’t need to support any other SIM card.
With its own SIM card, Apple wants to make it easy for users to switch between carriers. This is especially helpful for people who are travelling. Apple’s SIM card allows users to switch to the best and cheapest network when they are traveling to different places. The feature will make the iPad more attractive. It will also benefit Apple since the newly released iPad Air 2 and iPad Mini 3 only have a few incremental features.
Learn more about Apple’s iPad Mini 3 in Must-know: Did Apple need to launch the iPad Mini 3? .
Apple wants to improve its share in the tablet market
The SIM card will also help Apple improve its position in the tablet market. Apple has been consistently losing share in the tablet market. However, it’s still the leader.
According to a report from the IDC (International Data Corporation), and as the above chart shows, Apple’s share in the tablet market declined from ~29% in 3Q13 to ~23% in 3Q14. Samsung’s share also declined slightly. The “Other” category gained the most. It includes the low-cost tablets based on the Android operating system.
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