The Sunday Telegraph understands that Apple has given up on its plan to bypass operators after they warned that they would refuse to continue subsidising the cost of the expensive phones. At present mobile operators pay Apple the full £375 cost of the phone, which they pass on to consumers for free if they sign up for 24-month contracts.
Apple had wanted to exclude operators, such as Vodafone and O2, from the sale process in order to build a more direct relationship with customers. The Californian technology giant had been working on plans to create an integrated SIM card so that consumers could buy the phone without having to sign up to operators' long-term contracts.
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."
However, it is understood that Apple is pushing ahead with the new SIM card in its iPad devices. The source said Apple was expected to bring out integrated-SIM versions of the iPad in the run-up to Christmas or early in the New Year, as previously reported in The Sunday Telegraph. Apple has been able to press ahead with new SIM in the iPad because the popular touchscreen computer is not subsidised by mobile operators.
A new version of the iPad is expected to be released within few weeks. It will be similar to the current model, but the "lock" button the right-hand side will be changed to a "mute" button similar to the one on the iPhone.
