Apple: the iPhone 5 wont have an onboard SIM

Under pressure from mobile carriers, Apple has stood down and confirmed that they won’t use an onboard SIM on their next generation iPhone..

The project to have an onboard SIM card sealed into the iPhone on the next generation iPhone 5, anticipated for mid-2011 probably won’t see the light of day after carriers put pressure on Apple to prevent this initiative from getting off the ground.

But according to the Financial Times, Apple had already stated to carriers that the programmable sealed SIM card was never intended for their next Smartphone, although this would nevertheless be abandoned.

The threat that subsidies granted to the iPhone would be cut, allowing the retail process of the device to be reduced from $600-700 to $200 was something taken seriously by Apple in a sector which sees fierce competition.


A scary but intriguing initiative
Not all operators appear to be united though. While large groups like Orange and Vodafone have stated their opposition, others like Deutsche Telekom, aren’t completely closed on the idea of a sealed SIM card and are requesting more information.

Of course, carriers are afraid that Apple may turn their clients to their advantage, but such a system could eventually make mobile migrations easier between carriers, with the addition of new subscription types. A method of conserving the number will then have to be developed though.

In the end, it’s Apple who could become a virtual mobile carrier, even if nothing has been stated about this eventual hypothesis, by directly offering their own services. The telecom industry is in any event engaged in a round of observation, not yet knowing where the next hit may come from.

In the meantime, carriers are organising themselves and have launched workgroup to develop an open solution for onboard reprogrammable SIM cards, with the official reason being to adapt to the new M2M uses (Machine to Machine) and communicative electronic gadgets.