apple’s venture into SIM card manufacturing for their iPhone wasn’t taken well by mobile operators. Their threats to stop selling the iPhone has resulted in Apple giving up on their plan. Mobile operators have been paying the full cost of the device to Apple, which results in consumers getting the iPhone for free if they sign up for 24-month contracts.
Apple had been in the planning stage for creating integrated SIM cards so that users don’t have to buy services from mobile phone operators through long-term contracts. In order to build a more direct relationship with customers, Apple had tried to exclude mobile phone operators like Vodafone and O2. A senior source at a mobile operator said: "Apple has long been trying to build closer and closer relationships and cut out the operators. But this time they have been sent back to the drawing board with their tails between their legs."
While Apple will not go ahead with SIM cards for the iPhone, they seem to be pushing the plans for the iPad. As per sources, Apple should be out with integrated-SIM versions of the iPad, just before Christmas or early next year. Apple is going ahead with SIM for iPad as mobile operators don’t offer subsidized iPads.