Apple abandons plans for integrated iPhone SIM

By on Nov 21, 2010 at 10:30 AM
mobile November 21, 2010

According to an unconfirmed report in The Telegraph Sunday morning, Apple has abandoned its plans to develop an integrated SIM card for the iPhone. The report, which cites a senior source at a mobile operator, suggests that Apple backed down from its plans in light of pressures from European carriers. Apple was rumored to be developing an integrated SIM card that would be commissionable by multiple operators. This would allow Apple to exclude carriers from the sale process. It would also allow customers to easily transfer their service from one carrier to another without the need to obtain a new SIM card or purchase a new handset. Following purported threats from European carriers that would refuse to subsidize the high cost of the iPhone if Apple decided to implement its new SIM, Apple is now said to have ceased development. “Apple has long been trying to build closer and closer relationships and cut out the operators,” The Telegraph’s source stated. “But this time they have been sent back to the drawing board with their tails between their legs.”

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  • Anonymous

    What? Apple backing down?
    I Love it!

    • Anonymous

      Yeah. . . while they continue to make over a million dollars an hour from iOS. I think Apple will be just fine.

      Of course, when your carrier nails you for a bunch of unnecessary fees, decides when you can download updates, installs a bunch of crapware and makes Bing the default search provider on your phone, you’ll complain about their control over your device, except no one will be listening. Apple backing down here isn’t the kind of thing that helps consumers. Seriously, get a clue.

      • Anees Younis

        A great perspective and I would totally agree with that! It shouldn’t be a case of whether you love or hate Apple. It’s more about the carriers not delivering the service that they should and charging extortionate fees.

        I believe consumers should have the power to decide which carrier is most suitable for them and switching should be a seamless process, and the integrated SIM would leverage this. But of course the greedy carriers were always going to spit their dummies out over this.

      • Anonymous

        Wow! Some people just can’t stand reading anything bad about their favorite brand, and inevitably have to respond pointing out how awesome Apple is. iSheep!

  • Olegreg

    Gonna have to say that I wasn’t a fan of the integrated sim

    • http://twitter.com/bradleyjp Bradley

      Why not?

      • sirpaul

        Because you lose some freedom.

      • Norm

        How do you lose freedom? Did you not read article? It actually gave you MORE freedom to switch between carriers without having your phone locked to their service…I know you hate Apple (so do I), but get a clue.

      • sirpaul

        @ Norm

        The sim replacement does not offer replacements for all carriers, nor does it keep your phone unlocked. If you want an unlocked phone you’ll have to pay full price, which is how things are now anyways. I prefer to pay an extra $20 for a SIM and be able to use it with all carriers (even those that may not carry the iPhone), then have a phone that only works in ‘most’ situations.

        And I don’t hate Apple, I have and iPhone. I’d rather watch an Apple keynote than a just-released movie. I get more of a high from Apple news than a crack addict gets from Cocaine. Doesn’t mean I like every one of their decisions ;) I’m not really a fanboy or hater of any brand – all have pros and cons.

      • Anonymous

        Are you kidding me Norm? You don’t need a freakn integrated SIM to gain freedom, Apple just needs to not lock the iPhone, and offer an unlock for those who have satisfied their contracts.

        AND BY THE WAY, you lose freedom with integrated sim because you can’t take the SIM out and put it into whatever phone you want to use.

      • sirpaul

        @ zephxiiii
        Finally, an intelligent comment! You are 100% right. What if I want to take MY SIM and stick it in an iPad or netbook or let my friend visiting from somewhere else borrow it…what do I do then? Exactly.

        Thumbs up for you!

      • Alex Lau

        @Norm

        obviously you do not travel a lot or do not have much information on how it works internationally…

        You lose freedom because as of right now, the iPhone can be purchased unlocked and work with any carrier around the world that supports GSM. I can go to Asia and Europe right now and use my Hong Kong purchased legally unlocked iPhone 4 with any carriers there.

        if there was an integrated SIM CARD option…

        You will only be limited to the companies that signed a contract with Apple which is not many around the world.

        You will also not be able to use a line that is already active like someone’s sim card.

        You will immediately be forced to use a data plan even though you may not need it in the short term. such as in the US with AT&T.

        You may not (we don’t know what contracts or deals Apple will sign yet) sign up for short term contracts such as a 2 week data plan like they have in Europe for travelers.

        You may not use an existing plan to port over because Apple and carriers have different systems and usually will force the customers to start a new plan.

        SOME MAY ARGUE that well, it makes the experience of transferring to another carrier a lot more easier… I believe that it may be true in terms of customer experience, but for me personally, just thinking about all the problems that may arise from traveling back and forth around the world, the system may prove to be a nuisance.

  • Tomm

    There will never be a day that I defend the greedy carriers!

    Oh wait.

  • http://twitter.com/bradleyjp Bradley

    I don’t know if I necessarily believe it. It isn’t like Apple to back down.

    I suspect it was just pushed aside for now until the iPhone 5 is truly finalized and they tell the carriers to buzz off.

  • Anonymous

    Good. If Apple chooses to be locked down, that’s cool. This was going too far. One thing I love about GSM and hate about Verizon’s CDMA is I can’t seemingly switch phones by swapping SIM cards. Glad that’s sticking around.

  • Brian

    Android’s presence being felt. Carriers have leverage against Apple now. Intersting… But I am no fan of carrier or Apple’s business practices when it comes to subsidizing of phones…. Sent from my iPad…

    • Anonymous

      For the most part Brian you have some good posts and points. This time though I believe you are mistaken. Android isn’t applying pressure to any company other than those that manufacturer phone using the OS. Apple is clearly premature in attempting this plan but it will happen. Apple likes to keep their brand as polished as possible and there is no better way to have another company compromise this than to give them control (however small). Now, the fact that the GSMA has already approved this it will not just be Apple that we will seeing supplying phones with integrated SIMs.

      That sign off was classic.

    • Norm

      I couldn’t agree more. DROID FTW BRIAN!

      • Norms Soiled Underpants

        Hey come wash the brown streak off me

    • Donny

      I don’t think it has anything to with Android. Rather it has to do with carriers being forced to own up to their network performance and pricing.

  • sirpaul

    intergrated SIM is a horrible idea. What would I do when traveling to US and Europe?

    • Norm

      READ THE ARTICLE MORON! “It would also allow customers to easily transfer their service from one carrier to another without the need to obtain a new SIM card or purchase a new handset.”

      • sirpaul

        Not ALL carriers. Discount carriers for example. They are different country to country.

      • Anonymous

        Only if Apple allowed. Judging by the way they have been locking down their current hardware, this would likely wipe out most any hope for any user-created unlocks to avoid roaming charges/carrier choices.

      • Anonymous

        Holy crap Norm you’re actually posting an intelligent response. I’m speechless

      • Norms Soiled Underpants

        Hey owner get off BGR and wash me. A few days ago you dropped a huge log when you say the Droids for a cent sale on amazon and I’m getting tired of that brown streak running down the back of me. Stop playing on BGR and get your laundry done. You can play with your Droid as I’m being washed.

    • Elektra

      Simple. You subscribe to a carrier from whichever country you’re at, and you wouldn’t need a sim card to do so. Or, you could keep your existing carrier and pay roaming charges.

      • sirpaul

        Or you buy a SIM from the carrier and get a one month plan while you are there. Then reuse the SIM card. Europe has much cheaper plans then we do in North America so it is well worth it. No roaming charges, and extremely cheap local rates (local is actually national in a lot of countries).

        For those intersted: my grandparents in Romania pay a grand total of..wait for it….5 euro (7 USD) a month for 700 local minutes, 70 international, and unlimited text. So yes, buying a SIM one time and getting a plan for one month is totally worth it.

  • Anonymous

    For those who have not heard, the GSMA has already approved this road. Apple will do this eventually. It is your opinion either way on this matter. As far as Apple goes they are not concerned with your opinion either way. They will take the approach they feel best for their business and their customers experience.

    Apple is not (and never has been) concerned with what people think they want. Apple does what is best for Apple’s business. Facts are this:

    In the last twelve years Apple has grown from a -$10 Billion a year business to a $60+ Billion dollar business.
    Customers are buying Apple products in record numbers every quarter.
    Their business practices have helped the company to bank over $50 Billion.

    You can argue a lot of things out of opinion but you can not argue their success. If and when we can buy an iPhone (whatever) and activate just through iTunes (or MobileMe) and not have to deal with the carriers directly that will be awesome. My original iPhone was so easy to set up. For those that don’t know, with the original iPhone you activated it through iTunes and had no need to enter an At&t store.

    • Anonymous

      When I “activated” my HTC Touch Pro2 on Verizon, I ordered online, it was delivered the next day, I turned the phone on and it worked. I didn’t even have to ask HTC’s permission (like connecting to my computer to use some bloated piece of software) to make it work!

      Best part it – it has a SIM card slot as well, so when I travel around Asia I can pop in a new SIM card as soon as I cross a border. And I don’t have to ask HTC or Verizon for permission to do so…

      • Anonymous

        There seems to be more than a few people on BGR that are “world” travelers.

        …….. So what other network can you use that particular phone with in the US?

      • Anonymous

        In the US, it’s basically Verizon. I could go to Sprint and get it reprogrammed for their network, but that’s that’s the limit for CDMA. Not sure about GSM use in the US (never tried it), but I prefer CDMA/Verizon over here in the US anyway – better coverage, plenty of bandwidth, it always works. Last year at CES it was entertaining to meet with several Apple engineers – like most AT&T clients, they had zero bandwidth and connectivity at the Convention Center. I ended up turning on the WIFI hotspot on my phone so they could at least connect through my Verizon/WinMo/HTC phone and get their flight information, etc.

        I use the GSM SIM card capability a lot, though, as I spend ~60% of my time in Asia, traveling between China, Thailand, Taiwan, South Korea, Hong Kong, and Singapore. And I have SIM cards (and thus “local” numbers) for each of those countries. Pop a SIM card in and I’m online immediately.

      • http://www.facebook.com/peterf Peter Fares

        Actually, you can use it on AT&T and T-Mobile, but just not on 3G. It only has 2100MHz UMTS but has Quadband GSM. You also need to get it SIM-unlocked first.
        The Sprint version is locked to not run on AT&T or T-Mobile, even when the SIM slot is unlocked. Flashing the Verizon radio firmware fixes that though.

    • Dario69

      Nice history lesson. Thank you. But no one is arguing about their success. That is obvious. It is about their heavy handed tactics to maintain that success that is in question. Apple, the carriers, they all want our money and control of revenue streams. The question is who wins? In this case it wasn’t Apple.

  • Guest

    So… a rumor with no proof is now never going to happen according to an unconfirmed report.

    What was the point of publishing any of it to begin with?

  • Dougie Hoser

    I am convinced that Apple’s plan would benefit consumers. They could buy an iPhone and get their cell service separately. The carriers have won and we’ve lost. Again.

    • Anonymous

      You can do that now, you know. You can pay full price for an unlocked iPhone, then go choose a GSM carrier, get a SIM card, and plug it in. How would this new approach create more freedom? You would have to connect to iTunes and then choose a new carrier from Apple’s approved list, rather than ANY available carrier. Harder to change the SIM card (you need to connect to iTunes and Apple’s servers) and selection is restricted. Seems like an all-around fail to me…

      • Anonymous

        Simple with the ability for you to take your handset around and shop for the best carrier deal it would have forced carriers to directly compete against one another in a more head on market. It would have been only a matter of time before one of them gave their customers a cheaper data plan and all the others would have had to follow suit. In parts of Europe and Asia it would have been great for smaller carriers because they could just offer voice and data plans and don’t have to worry about subsidizing the handset. That money saved could be thrown into improving and increasing the size of their networks.

      • http://www.facebook.com/peterf Peter Fares

        That is how it CURRENTLY is. Wow this iSheep is far into the Reality Distortion Field. Smaller carriers that can’t subsidize iPhones? Meaning you’re paying full price for the iPhone? You can ALREADY do that. Buy a factory unlocked iPhone and get the SIM card from the small carrier. This works with ANY small carrier RIGHT NOW.
        If the SIM was built in, and the carrier upset Jobs in any way, they wouldn’t be on the list of carriers you can choose on iTunes and you wouldn’t be able to use them.
        The iPhone would no longer come subsidized, putting it out of reach of a lot of its current userbase.

      • Anonymous

        I can do that RIGHT NOW. Except I don’t have to log in to a proprietary program on my computer and get the phone manufacturer to bless my purchase of the SIM card. I just walk in to the phone store, buy a SIM card, and plug it in.

        Seriously, all this adds is ANOTHER step in the process, ANOTHER gatekeeper in the chain, and MORE difficulty in setting up. Consider this:

        I have a China Mobile SIM card, and an AIS THAI SIM card. The China Mobile card does not roam in Thailand; the AIS card does not roam in China. So when I fly from Shanghai to Bangkok, how does it work now? I leave my China Mobile SIM card in until I land in Bangkok. Then I plug in my AIS SIM card.

        With Apple’s approach? I would need to log in when I’m still in China, and have Apple reset my SIM card. And then it no longer works in China. And then when I’m heading back I’d have to do the same in Bangkok.

        And if I cannot log in from my SIM card/3G (which is NOT that uncommon in much of the rest of the world)? Well, I guess I should do it when I’m still at my apartment, where I have reliable DSL connection. Of course, then I can’t use my phone for the entire time I leave my apartment until I arrive at my destination.

        Or, those few times I’ve gone to Laos (since it’s only a couple hours from my place in Chaiyaphum, Thailand). NO 3G connection at all, and most hotels don’t have DSL. Cellphones are prevalent, but no data connection. And again, another SIM card needed, and that SIM card doesn’t roam in Thailand, and my AIS SIM doesn’t roam in Thailand. So I could switch from AIS to LTS when in Thailand, but after that – I’m stuck (I use 3G for my data connection in Thailand; DSL doesn’t exist where I live). My phone is now set up for a Laotian carrier and I can’t use it in Thailand.

        So coming back from Thailand, well, I can’t log in to switch over my account. Meaning I have to wait until I get down into Chaiyaphum proper (a 1 hour drive away), or into Bangkok, and can visit an Internet cafe, hook up my laptop, and go. Yeah, that’s real convenient!

        No thanks, I’ll stick with a few SIM cards that I can plug in quickly and easily, and I don’t have to worry about timing of switching the card, or Apple blessing my union with a given carrier. I’ll just walk in to the local phone store and pick up what I need.

        Again, Apple completely misses it Internationally; what works for their way of thinking in the US only simply doesn’t come close to translating for most of the rest of the world.

      • Anonymous

        You know with SIM cards you can do that right now… In fact, you don’t even need to take your handset with you – you can walk in to a carrier or phone store and buy a SIM card with the features/plan you want, then plug it in to your phone.

        Seriously, this whole Apple concept brings NOTHING new that isn’t possible, except that you now have to do what you did before but do it with Apple and iTunes getting between you and the carrier.

        And I don’t think you know the Asia market; phones are basically NEVER subsidized. In fact, most cell phone plans are pre-paid on top of it. At least, that’s what I’ve seen. But what do I know – I only live over there 6-7 months of the year…

        Subsidized handsets are a US thing predominantly; most of the rest of the world buys unlocked phones. And if you think this would have allowed you to get a subsidized phone AND avoid a lockin, you’re sorely mistaken. You’d get to buy unsubsidized and unlocked (like you can now), or subsidized and locked. You don’t get to mix the two – no carrier would ever subsidize your phone that you can take and move to a different carrier in a month…

  • Anonymous

    The last paragraph on the original article is absolute tosh.

  • Anonymous

    fuck the carriers…

  • Tigersingh52

    That’ s why nokia is still the number 1 mobile maker in the world most of their phones are sold unlocked and that’ s why all of my phone are now from nokia, such as the n97, n900 and i also got a free c60-00 from nokiausa

    • Anonymous

      I suggest you get a sex change and move to Finland. Considering you’ve whored yourself out to Nokias products you might as well try becoming their CEO’s personal whore too.

      • Len

        Maybe you can be his coach on how to become a CEO’s personal whore.. You seem to be doing a stellar job for Mr. Jobs.

      • Norms Soiled Underpants

        You wish you were Job’s boytoy don’t you?

      • Anonymous

        You want Job’s bad don’t you?

  • Tigersigh52

    I also got the new n8 which blows the iphone 4 away the iphone have been fucking left in the fucking dust.

    • Elektra

      The sales figures and the reviews do not agree with you :)

    • Anonymous

      Congrajulations you get a cookie for having a better cheaply manufactured cellphone then everyone else. Of coarse it’s not like anyone else really cares. After all most people have lives and couldn’t care less about a stupid plastic phone.

  • Mgl323

    This would make for sense for the iPad instead of the iPhone.

  • http://twitter.com/fyrfyter33 fyrfyter33

    Once again, Apple thinks they control the world, only to have the rug yanked out from under them. They deserve this, for the way they act. Why in the world any carrier would agree to an integrated SIM is beyond me. Seeing as how this would allow apple to control which carriers the phone works on. Something tells me that would also mean they could charge exorbitantly higher prices than they already do, and lock out carriers that don’t pay.Integrated SIMs sound like more trouble than they are worth. You are placing limits on a handset. While I am all for a little competition, limits like this are just pointless. If you can’t get all the carriers to agree on a new technology for controlling handsets, there is no point on trying to do it on your own.

    • Elektra

      You don’t like Apple to have control, but it’s ok for carriers to control you. Well, between the two evils, I choose Apple’s approach. With this integrated sim approach, uses can switch carriers seamlessly. It’s like having an unlocked iphone minus the sim. How is that a bad thing? I think you just hate Apple :)

      • http://www.facebook.com/peterf Peter Fares

        The carriers DON’T control your phone when there is a SIM card. You can remove the SIM from the phone and put it into a different phone. Or put a different SIM into your phone. You can NOT do that with a built in SIM card.

    • Anonymous

      Are you really that fucking stupid? An integrated sim would have finally freed the user from locked in contracts and forced the carriers to actually have stopped gouging people on data. I’m guessing from the way you worded your comment you’re an I hate everything Apple fandroid. So much for the Google sheep screaming about how they prefer choice. With this sim being DOA you can now enjoy locked in contracts and higher data rates and being forced to change handsets if you choose to jump carriers. The mentality of iSheep and fandroids truly hits the point of being idiotic when people actually choose to be financially gouged by carriers only because they hate a certain platform. It’s just mind boggling how some people choose to display a lack of intelligence.

      • http://www.facebook.com/peterf Peter Fares

        It wouldn’t have done that at all. Apple would still have had to lock it to one carrier until the contract is over, or the carrier wouldn’t have subsidized the phone.

      • Anonymous

        Apparently you don’t get how it works now. You buy a SIM card, you plug it in. Done. Really, it’s that easy – I do it all the time. Just four total steps:

        1. Buy SIM card.
        2. Open phone.
        3. Swap SIM cards.
        4. Close phone.

        No computer needed, just me, the SIM card, and my phone. I can do it right on the street corner, or in the local shop where I bought the SIM card. Convenient, easy, and I can change as I desire, when I desire.

        What does this approach bring?

        You turn on your laptop (you do have it with you, right?). You connect your phone to the computer (you do have that cable, right?). You start iTunes via a 3G connection (your current carrier has a decent 3G connection, right? Not always the case in more remote locations). You select a new carrier. You hope that Apple let’s you use a US credit card overseas (not always possible; lots of problems even in China). You download that new softSIM into your phone. You shut down iTunes. You disconnect your phone. You turn off your laptop. You pack your cable and laptop away.

        It’s a lot more operations, I’m required to use my computer (what’s the point of a smartphone if I have to tether all the time to a computer?), I better have a broadband connection (which means in a lot of places I’d be completely out of luck, because the non-roaming local carrier is the ONLY half-way broadband connection you can get, and they won’t let you use any broadband connect until you have their SIM installed – a chicken and egg scenario if you need broadband to get access to their broadband network), and I get to select only from carriers that have an agreement with Apple (which will mean a LOT of the smaller carriers in far-out places in Thailand, Laos, Indonesia, Kenya, and other more-remote areas won’t be listed), and I have to time my switches so that I’m not stuck with a dead phone (many of those more remote carriers don’t have roaming agreements).

        At best, it’s more complicated, requires me to use my laptop and cabling (things I might not want to bring out in most locations, until I’m in a hotel room), and more restrictive in terms of carriers than the current system of replaceable SIM cards. At worst, it eliminates the ability to actually use your phone in large portions of the world.

        On the contrary, rather than freeing you from locked-in contracts and carriers, it locks you in to Apple-only and guarantees you’ll only use THEIR chosen carriers. Freedom is diminished, and most assuredly prices will go up. All around fail on this one…

      • DigitalFreak

        First why use all those stupid sim cards? Secondly if its done properly why even have to go through iTunes more then once if at all (dare I dream of a iDevice that’s not shackled to iTunes)? If you really travel as much as you say them line up all your providers in one shot beforehand click ok and DONE. You’re completely missing my point. As far as I’m concerned carriers should be offering a simple voice plan and a simple cross the board data bucket that people can access with whatever device they so choose on a month to month basis. Whether carriers like it or not with the future expansion of the cloud that will be the pay structure of the future. It has to be other words people will be paying thousands upon thousands of dollars just to access their files on the cloud.

      • Anonymous

        How do you switch providers on the phone? It was a single-shot SIM – not multiples at one time.And right now, I can get a “bucket of minutes” for a fixed rate – it’s tied to the SIM card, not the phone. Use it in my Gionee L6, or my HTC Touch Pro2, or my old Samsung E898 and it’s the same minutes consumed. It’s exactly what you claim to want: buy the SIM card and whatever device is using that SIM card gets that bucket of voice and data. It’s not tied to a device (unlike this proposed Apple system).What does this bring to the system, other than Apple and iTunes being in the loop, controlling what you can do? Have you ever actually swapped a SIM card on a phone, when traveling?

      • Alex Lau

        @Digital Freak

        obviously you do not travel a lot or do not have much information on how it works internationally…

        You lose freedom because as of right now, the iPhone can be purchased unlocked and work with any carrier around the world that supports GSM. I can go to Asia and Europe right now and use my Hong Kong purchased legally unlocked iPhone 4 with any carriers there.

        if there was an integrated SIM CARD option…

        You will only be limited to the companies that signed a contract with Apple which is not many around the world.

        You will also not be able to use a line that is already active like someone’s sim card.

        You will immediately be forced to use a data plan even though you may not need it in the short term. such as in the US with AT&T.

        You may not (we don’t know what contracts or deals Apple will sign yet) sign up for short term contracts such as a 2 week data plan like they have in Europe for travelers.

        You may not use an existing plan to port over because Apple and carriers have different systems and usually will force the customers to start a new plan.

        SOME MAY ARGUE that well, it makes the experience of transferring to another carrier a lot more easier… I believe that it may be true in terms of customer experience, but for me personally, just thinking about all the problems that may arise from traveling back and forth around the world, the system may prove to be a nuisance.

  • Elektra

    This would have been better for users. Apple should have pushed for it. Consumers would be behind them on this one.

    • http://www.facebook.com/peterf Peter Fares

      Careful! You’re dangerously far into Jobs’ Reality Distortion Field. Please turn back!

  • http://twitter.com/POLOFAME Rob

    noooooo cant be true

  • Anonymous

    @ShanghaiDan
    Fine man whatever you say. Enjoy your sim’s.

  • http://twitter.com/CliphNotz Moses Wilson

    First, the development of this integrated SIM card was never even confirmed. Secondly, if there is a technologically Apple really wants to develop they will most assuredly not let other organizations dictate whether it is produced or not.

    Carriers are using Android to effectively carve out market share and compete with the iPhone. But they are doing this because they don’t have access to the iPhone and if they could get, you’d be able to buy them tomorrow.

    Android’s growing market share is coming primarily from RIM and Nokia at this point, no the iPhone. If this is a technology that is distributed in the US only they can do it. Apple’s margins on the iPhone are close to 60%. They are far from being in a defensive position at this point.

  • http://twitter.com/NokTokDaddy Steve Barker

    Damn Right, ShanghaiDan!

    I bought a X3-02 on Orange Pay-As-You-Go here in the UK the other week ’cause it’s £60 cheaper than buying it on my preferred network (Vodafone);

    Outside the shop I swapped the Orange SIM for my Vodafone SIM and that was it!

    Some devices are locked to networks, but this can be effected for £10-£20.

    I admire Apple products, I really do, but I don’t want to buy into Apple’s all-controlling walled garden myself. I trial-swapped my N900 with a friends 3GS a while back – we just swapped SIMs. How hard would it be to try out new devices under the Apple SIM kerfew?

    If it ain’t broke – don’t fix it!

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