Josh OngIn October, reports emerged claiming that Apple has been working with Gemalto to develop an open SIM for integration into the iPhone. An embedded SIM card could allow customers to choose between competing carriers and activate service right from the Apple Store.
According to a Financial Times report, European wireless operators are riled up about that possibility. "The operators are accusing Apple of trying to gain control of their relationship with their mobile customers with the new SIM," wrote author Andrew Parker. With the embedded SIM, customers could insist on shorter-term contracts, using the ability to easily switch between carriers as leverage.
In response to the rumors, the carriers are "privately saying" that they could refuse to subsidize the iPhone if Apple goes through with an embedded SIM, Parker wrote. Among European operators, Vodafone in the UK, France Telecom and Telefónica in Spain are "known to have concerns" about Apple's interest. One European telecom senior executive said the new SIM could lead to a "war" between operators and Apple.
In just 3 years, Apple's iPhone has already shaken up the wireless industry, and a multi-carrier integrated SIM would cause further disruption for carriers. Bernstein analyst Robin Bienenstock told the Financial Times that an embedded SIM “could ultimately prove to be the first step in a process in which [the mobile operators] cede customer control to handset vendors like Apple, [and are] relegated to commodity capacity providers.â€
That step, however, could cost Apple. Bienenstock estimated that Apple’s global iPhone sales could take a 12 percent hit if European carriers made good on their threats to drop subsidies for the handset.
Sponsored Content
Wesley Hilliard
AppleInsider Staff
Andrew Orr
Amber Neely
William Gallagher
119 Comments
asuming of course that all mobile carriers in a country are on board. Else Apple might just offer the iPhone to other carrier who'd happily take it. And customers beeing customers and wanting an iphone they'd just change carriers.
Let them complain. There will always be a carrier wiling to pay the subsities to get the iPhone. When it comes time, they'll all remember the demand the iPhone 4 generated. And they'll want in. Let them complain.
This makes no sense. I'm not sure how it works in Europe... but in the US, if you switch carriers, it costs a boat load in early termination fees.
if the contract is up... then how is this integrated sim any different from swapping out the sim with a new carrier. It's more convenient and easier sure, but if someone wants to switch carriers, they will do it whether or not there's an App for it.
If the carriers don't subsidise the iPhone cost they won't have the leverage to lock you into a contract by stating that they need to re-coop the subsidy over xx months. If you have to pay £600 for the phone you might as well go for a 'sim only' type contract on a rolling monthly basis. The initial cost will be higher but your monthly will be lower.
Yeah like they would risk giving up the greatest selling product in HUMAN HISTORY! They would have riots on their hands, nobody would be using the carriers. Everybody would be boycotting their asses till they go broke or give in. I hope they do cause it would be HILLARIOUS!!!