The tech industry is suffering from a shortage semiconductors and production problems will not be limited to items such as computer components waves gaming consoles, but also for the manufacture of the necessary accessory for smartphones: SIM card.
As noted by Global Technology Intelligence ABI Researchit is expected that the supply of replaceable SIM-cards will decrease from 4.36 billion units in 2021 to 3.93 billion in 2022.. According to the company, it is a by-product COVID-19 pandemicwhich caused a shortage of chips last year.
as explained Phil SeeleyCyber Security Research Director at Telco de ABI Research, “It is expected that supply levels of SIM cards in their removable format prior to COVID-19 will not be reached again.due to other market concerns such as the continued decline in SIM replacement rates and the rapid growth of eSIM.”.
“Chip shortages should be seen as a short-term market problem that is likely to will improve in 2023 when more power is added chip production and the market recovers briefly.”Seeley said in a statement.
SIM cards face more than just a pandemic
so it stands out seelyThe main threats to the SIM card market are not only the pandemic and the shortage of semiconductors, but also saturation of the mobile phone marketwhich limits growth opportunities. “Average selling prices for smartphones are significantly higher than a few years ago, which has a negative impact on the churn rate of removable SIM cards, as Device contracts are being extended to spread the cost of more expensive smartphones over a longer period of time.”the executive said.
In addition, the growing popularity eSIM This market has also shrunk because, despite the fact that there are a large number of these devices today, the use of equipment with two sim cardswhich combines an electronic version with a traditional plug-in card has limited the impact of plug-in cards so far.
“Usually, ABI Research believes that the market removable SIM cards will only be slightly affected eSIM in the next two years due to the continued release of dual SIM devices. However, with strong rumors circulating around the release Apple device with eSIM onlya higher level of exposure should be expected from 2023 to 2024”Seeley said.
The origin of the SIM card report
Report ABI Research is part of the investigation TelcoCybersecurity which includes data, research and ABI Insights. Market Data Spreadsheets are made up of market share data obtained by the company and service-specific segmented forecasts to provide a better segmented view of where opportunities lie.
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Source: RPP
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.