It’s still going to take a long time for everyone using physical SIMs to move to new phones. Loads of people I know are using 5+ year old phones with no intention of getting a new one until it breaks. There’s still a large market for non-smartphones and other devices like mobile routers, cameras etc. that need a SIM card. These don’t get replaced anywhere near as frequently as smartphones. My last mobile router lasted 5 years and I expect my new one to as well.