The iPad Air 2 was launched at a conference held by Apple (NASDAQ: AAPL) yesterday, with a new look and size. But not a single word was mentioned throughout the conference regarding the Apple SIM technology, a feature embedded in the iPad Air 2 which allows users to switch between network carriers without changing SIM cards.

It was only after the conference ended that Apple (NASDAQ: AAPL) SIM was listed as one of the new features in the new iPad, even though, according to analysts, it was the “biggest news” Apple Inc. (NASDAQ: AAPL) had to offer at the conference.

According to Apple Inc. (NASDAQ: AAPL), “the Apple (NASDAQ: AAPL) SIM gives you the flexibility to choose from a variety of short-term plans from select carriers in the US and UK right on your iPad.”

Basically, the technology behind the Apple (NASDAQ: AAPL) SIM feature is software-based. Apple (NASDAQ: AAPL) iPad Air 2 comes with an in-built SIM card, independent of carriers. To select carrier plans and carriers, users of the iPad Air 2 simply need to select the carrier or carrier plans on the options provided on the iPad’s screen, and the desired changes will be implemented automatically, without the need of getting or switching to a new SIM card.

According to Apple (NASDAQ: AAPL), the Apple SIM will allow users to connect to the best most-efficient network option available to them, regardless of location. Users may compare charts, performance statistics, and rates to make an informed decision about their carrier or data plan they wish to opt for, and are allowed the freedom to change their carrier options anytime they want on the new Apple (NASDAQ: AAPL) iPad Air 2.

AT&T, Sprint, T-Mobile of the US, and EE in UK, have already jumped on the boat to become the first companies to support the Apple (NASDAQ: AAPL) SIM technology.

But Apple (NASDAQ: AAPL) SIM also poses a threat to mobile operators. For mobile operators, the Apple (NASDAQ: AAPL) SIM presents increased competition, as customers are more willing and able now to switch over to alternate networks in case of unsatisfactory performance.

There are no long term commitment plans with the Apple (NASDAQ: AAPL) SIM, so consumers will now stick with a carrier as long as they deem it fit, compared to the contract plans spanning over 18 months or more.

The rates are much cheaper, as the carrier can almost always be local. As Apple (NASDAQ: AAPL) SIM has been designed to adapt to all carriers, it will work anywhere, as long as a carrier company supports the Apple (NASDAQ: AAPL) SIM. Hence, this cuts down on the income from roaming which carriers receive in millions every year, as consumers will easily be able to switch to a local carrier to avoid roaming charges.

Currently, the threat posed by Apple (NASDAQ: AAPL) SIM to mobile operators is limited to the iPad Air 2 only. But if, and very likely, when the Apple SIM comes to the iPhone, mobile operators will be in a lot of trouble. In UK, where iPhone users make up 33% of the market, Apple SIM will be a game-changer.

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