January 2010 saw Apple make another big splash with the launch of the iPad.  While the repercussions of Apple’s new product have yet to be felt, a subtle yet key feature of the iPad will have lasting impact amongst device manufacturers and Smart Card vendors alike.  The iPad, which will be available with 3G mobile networking in the May/June 2010 timeframe, will use the 3FF or Micro SIM form factor.

3FF SIM

Although Steve Jobs specifically and Apple in general are masters of showmanship and spin doctoring, they technically were not the first device launched with a 3FF SIM.  Technically Lok8u running on the T-Mobile network has that honor.  Lok8u’s selection of 3FF SIM is obvious.  Their num8 GPS children’s locator watch is just too small for the ubiquitous 2FF SIM.  The question remains why Apple, who’s iPad has been accused of being “just a bigger iPod Touch” by Nintendo’s CEO would require the smaller form factor SIM chip in their largest form factor mobile device.  Perhaps a better question is why device manufacturers have eschewed the 3FF form factor for so long considering the smaller form factor dates back to around 2003.

Comparison of SIM form factors

Since the dawn of the subscriber identification module (SIM Card) the technology and physical size of the smart card element have made great strides to increase functionality, convenience, and ease of integration.  This has resulted in smaller cards with increased processing capabilities, larger memory capacities, and unique features designed to enrich the end-user experience.  In fact, the original SIM cards used a form factor very similar to traditional cards (such as a credit or debit card), making them large, cumbersome, and design inhibitive.  Manufacturers of mobile devices have continued to raise the bar in terms of packing maximum features into minimum space and every component must continually shrink or deliver more features per cubic mm.  This trend means it is likely that the current standard 2FF SIM card format will prove inadequate for many of the more applications going forward, making an even smaller format necessary.

The new form factor – An outlook

A new smaller form factor will of course have the obvious benefits of addressing a wide range of devices, particularly those of which are miniature or have extreme internal space limitations.  However, another key benefit is that their adoption by carriers will lessen the restraints faced by handset manufacturers in their design process going forward, requiring less physical space than the more traditional cards and allowing manufacturers to allocate space to other components.  At a minimum moving from 2FF to 3FF should afford a minimal weight savings.  This benefits the end-user, as the SIM card capabilities remain static, while the restraints on the device are diminished, making smaller and more aesthetically pleasing devices possible.

In the near term we expect that some compatibility issues may be present – users may be initially limited in moving their SIM from one device to another.  We expect that restraint to be short lived as it should be feasible for card vendors or carriers to sell 2FF to 3FF adapters in much the same way as Micro SD to traditional SD adapters.

Micro SD adapter

We expect that 3FF will become the standard for non cell phone but for smart phones and features phones as well.

Expectations in the short term -

Currently as we enter 2010, unique devices are beginning to appear which utilize this relatively new SIM card standard to suit the design and size restraints present in their devices.  One such device is Lok8u’s GPS locator wrist watch, the nu.m8, which resides on T-Mobile’s network to provide parents/guardians with real-time information on the location of their children (or the elderly).  This device has obvious size constraints in fitting into a small watch, complete with antenna.  Packaging and use requirements mandated a small form factor removable SIM and thus was a solid candidate as one of the first devices publically available to be outfitted with a 3FF SIM card (which was provided by Gemalto).  Additionally, the recent announcement for the Apple IPad has also stated that the device will be using 3FF SIM cards on the AT&T network.  This will thus make two networks in the United States which are currently shipping 3FF SIM cards (the two primary GSM networks in the United States), and opening the door for new innovative devices.  Handset manufacturers will continue to look forward with a positive outlook since the new form factor will help them achieve more positive end user experience. The 2FF card will then see decreased use, since there will be practically no reason to stick with 2FF when 3FF offers so many advantages.

Conclusion

In addition to mobile phones, Frost and Sullivan predicts that non-cell phone devices, such as the Ipad and nu.m8, will continue to grow in popularity and have a high likelihood of adopting 3FF SIM.  Mobile phones emphasizing sleek and visually pleasing designs, such as the iPhone, are expected to be the first candidates for 3FF integration, as they are well poised to reap the most benefits from decreased internal bulk (allowing them to become thinner/more attractive devices).  Once 3FF begins to penetrate the market through such high end devices and 4G networks bring SIM cards to traditionally CDMA networks, such as Verizon, the industry will witness a large scale migration on all fronts for the 3FF form factor.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies.   Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

Media contact, please email jake.wengroff@frost.com or johanna.haynes@frost.com