I don’t think the SIM tray is going away on the iPhone 17 Air.

China is a huge market for Apple that still heavily relies on physical SIM cards. Today, all iPhones sold in China, Hong Kong, or Macao have a physical SIM slot that holds two nano-SIM cards.

Yes, two.

It’s a clever system where a nano-SIM card fits on each side of the nano-SIM tray, using up less physical space and making a nano-SIM card sandwich. To go from holding two SIM cards to zero would kill the iPhone 17 Air’s ability to be sold in a market that is already facing stiff competition against local competitors like Huawei and Xiaomi.

Two nano-SIM cards in half the space.

Source: Apple

It wouldn’t surprise me if Apple decides to engineer two distinct versions of the iPhone 17 Air, an eSIM only version and a SIM tray version. These won’t be like past models where Apple just shoves a plastic box in the US iPhones to fill up the SIM card space, but truly shuffling the components around in order to maximize the use of the internal space, and giving the eSIM version a bigger battery.

Apple has made distinct versions of iPhones in the past with the iPhone 4, where there were GSM and CDMA variants that had enough internal and external differences. Let’s not forget the iPhone 12 either that had a window for the mmWave 5G antenna for the US models.

Apple has slowly removed components from the iPhone to advance technology, but they are at a crossroads with the SIM tray. Either get rid of it and risk losing a lot of sales and marketshare in China, or keep it and just bite down hard and make two versions.

Internal space is always the enemy, and with the goal of making the most ambitious iPhone since the iPhone X, it becomes a nemesis.