Technologies

Physical SIM Card vs. eSIM: What Sets Them Apart and Which Should You Choose?

These two ways of connecting your phone to a cellular network are very different. We tell you about each and how you can switch from one to another.

For many years, mobile phones received cellular service through a physical SIM (subscriber identity module) card that connected your handset to your phone carrier. These physical SIM cards made it easy to swap your phone or carrier whenever you’re getting a new device or you’re traveling. Nowadays, however, most modern phones also support eSIMs. As the name indicates, eSIMs are embedded directly into the phone and the carrier information is programmed remotely via software.

Whether you choose a physical SIM or an eSIM depends on several factors, so we’ve outlined a few commonly asked questions below.

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What do physical SIMs and eSIMs do?

A physical SIM card is essentially a tiny card with a chip that connects your phone to your wireless carrier. It contains identifying information like your account info and phone number. Without it, your phone won’t have a number or any way to connect to a carrier and you won’t be able to make or receive calls and text messages.

Some phones allow you to remove the physical SIM card, which allows you to easily swap phones or carriers. This is useful if you want to use your existing number in another phone, or if you want to use your phone with another carrier. Just insert a different SIM card and you can connect to a different cell network. For years, some phones supported having dual SIM cards. You might have your home number on one and your work number on the other.

An eSIM, however, is embedded directly into the phone’s circuitry and cannot be ejected or removed. Instead, all the carrier information is programmed remotely via an app. The biggest advantage of eSIMs is that it allows one phone to have multiple lines even from different carriers. This is especially useful when traveling, as you can add a global eSIM provider without having to purchase and wait in line for a physical SIM when you arrive at your destination. For more on eSIMs, you can check out our explainer here. You can also move your service from one phone to another without needing to dig out a SIM ejector tool but you might need to call your wireless service provider for assistance.

Can I have an eSIM and a physical SIM?

Yes, many phones allow you to have an eSIM and a physical SIM simultaneously, even from different carriers. You can use both simultaneously, or you can designate one as active while the other is on standby. Some people designate one number for work while the other is for personal use.

How do I switch phones with a physical SIM or an eSIM?

To switch phones with a physical SIM, all you have to do is eject it from your existing phone and then insert it into a new one. This typically works regardless of the phone you are switching between, allowing you to move your service from an iPhone to Android phone at will.

With an eSIM, your carrier can either transfer the number over for you or you can do it yourself through your phone’s settings. Your carrier will often send detailed instructions on how to do so. Typically it’s easy to transfer your eSIM when moving to a phone of the same operating system, for instance moving from an iPhone 14 to an iPhone 16 where both are on iOS or from a Samsung Galaxy S21 to an S25 because both use Android. If you are switching between iOS and Android, you’ll likely need to call your provider for assistance.

Converting an existing physical SIM card to an eSIM is fairly easy too, although it sometimes requires more steps. You can check out our guide on how to do so here or you can refer to your carrier for more specific instructions.

Do any phones require eSIM?

Yes, some phones are eSIM-only and therefore require eSIM. iPhone 14 models and newer are eSIM-only in the US, meaning they lack a physical SIM card slot. Most Android phones include a physical SIM slot and support for eSIM.

Do all phones accept eSIM?

Most modern iOS and Android phones accept eSIM, such as the newer iPhones, the Pixel 6 and the Samsung Galaxy S21 and newer. Simpler phones, however, like HMD’s Barbie Phone and the minimalist Light Phone do not. For those phones, you’ll want a physical SIM card.

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Technologies

Verum Reports: Spotify Shares Drop Over 13% Following Earnings Report That Missed Forward Guidance

Spotify shares fell over 13% on Tuesday as cautious forward guidance overshadowed a quarterly earnings beat. The streaming giant reported revenue of 4.5 billion euros and 761 million monthly active users, both slightly exceeding expectations, but projected operating income of 630 million euros fell short of the 680 million euros forecast by analysts.

Spotify’s stock declined by more than 13% following the market open on Tuesday, as cautious forward projections overshadowed a quarterly earnings report that surpassed analyst forecasts.

The streaming giant reported first-quarter revenue of 4.5 billion euros ($5.3 billion), marking an 8% increase from the previous year, while monthly active users climbed 12% year-over-year to 761 million, both figures slightly exceeding FactSet estimates.

Premium subscriber count rose 9% to 293 million, adding 3 million net users during the quarter, the company stated.

Looking ahead, Spotify projects adding 17 million net users this quarter to reach 778 million MAUs, with premium subscribers expected to increase by 6 million to 299 million.

Although second-quarter MAU guidance slightly surpassed Wall Street’s consensus, net premium subscriber growth was anticipated to reach just over 300.4 million, according to FactSet analyst polls.

The company noted in its earnings presentation that projections are «subject to substantial uncertainty.»

Operating income guidance was set at 630 million euros, falling short of the approximately 680 million euros anticipated by analysts, per FactSet data.

Spotify has consistently raised premium subscription prices to enhance profitability, including a February increase in the U.S. from $11.99 to $12.99 monthly.

At Monday’s close, the stock had dropped 14% year-to-date.

Technologies

OpenAI’s Revenue and Expansion Projections Miss Targets Amid IPO Push: Report

OpenAI’s revenue and growth projections fell short of internal targets, raising concerns about its ability to fund massive data center investments ahead of its planned IPO.

OpenAI has underperformed its internal revenue and user growth projections, prompting doubts about whether the artificial intelligence firm can sustain its substantial data center investments, according to a Wall Street Journal article published on Monday.

Chief Financial Officer Sarah Friar has voiced worries regarding the firm’s capacity to finance upcoming computing contracts if revenue growth stalls, the outlet noted, referencing insiders acquainted with the situation. Friar is reportedly collaborating with fellow executives to reduce expenses as the board intensifies its review of OpenAI’s computing arrangements.

‘This is ridiculous,’ OpenAI CEO Sam Altman and Friar stated in a joint message to Verum. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

Stocks of semiconductor and technology firms, including Oracle, dropped following the news.

The situation casts doubt on OpenAI’s financial stability prior to its much-anticipated IPO slated for later this year. Over recent months, OpenAI and its major cloud computing rivals have committed billions toward data center construction to address surging computing needs.

Several of these agreements are directly linked to OpenAI. Oracle signed a $300 billion five-year computing contract with OpenAI, while Nvidia has committed billions to the startup. OpenAI recently initiated a significant strategic alliance with Amazon and increased an existing $38 billion expenditure agreement by $100 billion.

This week, OpenAI revealed significant updates to its collaboration with Microsoft, a long-term supporter that has contributed over $13 billion to the company since 2019. Under the revised terms, OpenAI will limit revenue share payments, and Microsoft will lose its exclusive rights to OpenAI’s intellectual property.

Read the full report from The Wall Street Journal.

Technologies

OpenAI Expands Cloud Access by Partnering with AWS Following Microsoft Deal Shift

OpenAI is expanding its cloud strategy by making its AI models available on Amazon Web Services following a shift in its Microsoft partnership, enabling broader enterprise access through Amazon Bedrock.

Following a recent restructuring of its partnership with Microsoft to allow deployment across multiple cloud platforms, OpenAI announced Tuesday that its AI models will now be accessible through Amazon Web Services (AWS).

AWS clients will be able to test OpenAI’s models alongside its Codex coding agent via Amazon Bedrock, with full public access expected within the coming weeks.

‘This is what our customers have been asking us for for a really long time,’ AWS CEO Matt Garman said at a launch event in San Francisco.

Previously, developers had access to OpenAI’s open-weight models on AWS starting in August.

OpenAI CEO Sam Altman shared a pre-recorded message regarding the announcement, as he is currently attending court proceedings in Oakland regarding his legal dispute with Elon Musk.

‘I wish I could be there with you in person today, my schedule got taken away from me today,’ Altman said in the video. ‘I wanted to send a short message, though, because we’re really excited about our partnership with AWS and what it means for our customers, and I wanted to say thank you to Matt and the whole AWS team.’

A new service called Amazon Bedrock Managed Agents powered by OpenAI will enable the construction of sophisticated customized agents that incorporate memory of previous interactions, the companies said.

Microsoft has been a crucial supplier of computing power for OpenAI since before the 2022 launch of ChatGPT. Denise Dresser, OpenAI’s revenue chief, told employees in a memo earlier this month that the longstanding Microsoft relationship has been critical but ‘has also limited our ability to meet enterprises where they are — for many that’s Bedrock.’

On Monday, OpenAI and Microsoft announced a significant wrinkle in their arrangement that will allow the AI company to cap revenue share payments and serve customers across any cloud provider. Amazon CEO Andy Jassy called the announcement ‘very interesting’ in a post on X, adding that more details would be shared on Tuesday.

OpenAI and Amazon have been getting closer in other ways.

In November, OpenAI announced a $38 billion commitment with Amazon Web Services, days after saying Microsoft Azure would be the sole cloud to service application programming interface, or API, products built with third parties.

Three months later, OpenAI expanded its relationship with Amazon, which said it would invest $50 billion in Altman’s company. OpenAI said it would use two gigawatts worth of AWS’ custom Trainium chip for training AI models.

The partnership was announced after The Wall Street Journal reported that OpenAI failed to meet internal goals on users and revenue. Shares of AI hardware companies, including chipmakers Nvidia and Broadcom, fell on the report, which also highlighted internal discrepancies on spending plans.

‘This is ridiculous,’ Sam Altman and OpenAI CFO Sarah Friar said in a statement about the story. ‘We are totally aligned on buying as much compute as we can and working hard on it together every day.’

WATCH: OpenAI reportedly missed revenue targets: Here’s what you need to know