I think Apple will make a cellular carrier plan. Here’s why.
iPhone sales are slowing. Bloomberg reported that demand for the new iPhone 14 line was weaker than expected. The cycle of shipping new iPhones with little innovation may finally catch up to Apple. It’s a cycle that has largely been propped up by Apple’s partnerships with Telecom companies.
Apple has to thank the cellular carriers – in the US, that’s AT&T, Verizon, and T-Mobile – for the enduring strength of iPhone sales. Those companies, enmeshed in a war of attrition for customers in a stagnant market, use iPhone promotions to either lure customers away from rivals or persuade their existing subscribers to stick with them… Just imagine what iPhone 14 sales would have been like if that had not been the case! Even worse, imagine the impact it would have on iPhone sales if the carriers ever decided to do away with the promotions entirely. – The Information
Fortunately for Apple, they’ve been shifting their revenue focus from hardware to software. Tim Cook boldly claimed in 2015 that Apple is now a services company that wants to make most of its revenue from subscriptions. And I think a cell service could be on the horizon.
Apple Cell Carrier Plan
Apple is switching all USA iPhone 14’s to eSIM, which is creating the opportunity to eventually enter the cell carrier market. By migrating users over to eSIM now, they’re laying the foundation to easily switch users over to their cell service, as it wouldn’t require a new physical SIM card.
The move to eSIM is a foundational move that could pay off big in the future.
Ultimately, because Apple is focusing so heavily on the services market with its News, Music, Fitness, iCloud Storage, TV, and Arcade offerings, it wouldn’t be that absurd to offer its own cell service in the US.
It was certainly a solid move for Google to create its own cell service with Google Fi, which works via physical SIM and eSIM cards. To be honest, Google Fi is the best carrier if you have a Google Pixel phone.
Furthermore, Google Fi is doing a great job marketing its cell service to travelers. Ryan and I both have plans with Google Fi, in addition to our Verizon plans, as Google Fi works better for us internationally.
If Google can do it, then so can Apple. And I think there’s a good chance that Apple begins offering cell service at some point in the near future.