Apple has made a rare special concession to Greater China with the design of its newest line of smartphones, revealing that new iPhone XS and iPhone XS Max produced for the market will not support the new eSIM feature.
The eSIM feature, which supports two simultaneous carriers and is designed to allow more convenient switching between them, will not be available in Hong Kong, mainland China and Macau, Bloombergreported.
Instead, the devices in these markets will offer slots for two physical SIM cards. This represents a rare case of Apple tailoring iPhones to a specific market.
The report notes that it is unclear whether the special arrangement is to comply with any Chinese regulations, or merely as a result of pressure from the market's operators reluctant to enable such easy switching between carriers, and Apple has not commented on the matter.
But whatever the reason, the concession demonstrates that Apple is willing to take extraordinary steps to maintain its foothold in the world's largest smartphone market. Greater China was responsible for around 20% of Apple's total revenues during its 2017 financial year – around $45 billion.
The company is under increasing competitive pressure from local vendors including Huawei and Xiaomi, which can differentiate by offering more locally oriented services.