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How Apple's iPhone X Could Make Big Telecom Companies Squirm

AT&T (T), Verizon Communications (VZ), Sprint (S) and T-Mobile US (TMUS) have something new to worry about: Apple (AAPL) is making it easier for consumers to switch wireless service providers and also is giving them more reason to buy the iPhone X at its website.

Apple is now selling versions of the high-end iPhone X that have no traditional subscriber identity module, or SIM, card and is instead using an embedded electronic version of the device. Morgan Stanley last year forecast that Apple's shift into e-SIMs will "shake up" the telecom industry by making it much easier for consumers to switch service providers.

X The upshot is that with an e-SIM, consumers can shop for the best wireless data plan and switch service providers instantly, without visiting retail stores.

SIM cards are used to identify user accounts and provide access to a wireless network. The tiny SIM cards are often found under a smartphone's battery.

Apple's electronic-SIM performs the same functions of a removable SIM card. Apple uses reprogrammable software to provide access to networks operated by Verizon, AT&T, T-Mobile or Sprint. Apple offers its own iPhone upgrade program as do the wireless firms.


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According to Apple's website: "SIM-free" means your iPhone doesn't ship with a carrier SIM card. That means you're free to use a SIM card from any carrier that provides service for iPhone. Your iPhone will only be tied to your carrier if you choose carrier financing."

According to 9to5Mac.com, Apple says it will deliver the SIM-free version of the iPhone X by Dec. 12 — in line with other versions of the device.

Apple shares fell 0.1% on the stock market today.

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