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Apple's SIM Card Plan Ditched?

micro-sim-cardPreviously, it had been rumored that Apple was trying to design its own SIM card for iPhone users, to give them a chance to use the device and be able to bypass carrier contracts at the same time.  But now, some carriers are saying they would forgo subsidizing the costs of the phone if Apple were to follow up on those plans.

According to The Sunday Telegraph, Apple has decided to scrap the plan after carriers threatened to continue subsidizing the costs of phone.  Currently, mobile operators pay Apple the full cost of the phone, which they then pass on to the consumer for free, provided they sign up for 24-month contracts.

Apple had been planning on excluding carriers, like Vodafone and O2, from the sales process, in an attempt to try and build a better relationship with customers.  Apple had been trying to create an integrated SIM card which would allow customers to buy the phone outright.

Said a senior source at a mobile operator: “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.”  Ouch.

In sort of a “consolation prize” though, Apple is still moving forward with the new SIM card in iPads.  The report is that Apple is planning to bring out the new integrated-SIM versions of the iPad prior to Christmas or early on in the new year.  The reason Apple is able to move forward with the iPad instead of the iPhone on this is because the iPad isn’t subsidized by mobile carriers.

The Sunday Telegraph continued saying that a new version of the iPad would be released within a few weeks and would be comparable the current model.  One change though is that the “lock” button on the right-hand side would be switched to a “mute” button such as the one on the iPhone. 

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Viacom Doesn't Like TV Rental Plan Either; CBS Possibly Open To It


Apple’s 99 cent rental plan just isn’t getting a whole lot of love from TV execs.  Yesterday it was Jeff Zucker and now Viacom and CBS aren’t exactly giving the new plan hugs and kisses either. 

“The 99-cent rental is not a good price point,” stated Viacom CEO Philipe Dauman.  “It doesn’t work for us.”

Viacom operates cable networks such as Comedy Central and Nickelodeon, and Viacom “invests heavily to produce its content,” notes Dauman.  Viacom is looking to up its investment in original content.

“We value our content a lot,” said Dauman.  “We don’t think Apple has it quite right yet.”


Over at CBS, CEO Les Moonves, is still being a bit wishy-washy about the subject.  Moonves expressed compliments toward Apple, but wants to see how the other networks involved, fare first.

“What we said to them — and the Apple guys are terrific and obviously the application is terrific — is let us see what happens,” noted Moonves.  “There are two networks in and two networks not in.  Let’s see what happens and maybe we’ll talk again in January, maybe we’ll talk again next year.”

As for the networks that have actually agreed to the deal so far, FOX and ABC, COO of FOX, Chase Carey said “I think we have to be willing to test some things,” and that they were willing to take a “short-term” risk on the rental plan.

Walt Disney Co. CEO Robert Iger wants his company to be a leader in adopting digital technology.  “We made a decision five years ago — actually when I got this job — that we would be much better off aligning with technology companies than fighting them,” he said.

“We think the rest of the studios will see the light and get on board pretty fast,” noted Apple CEO Steve Jobs on September 1st.

Time will certainly tell!

via AppleInsider

Follow this article’s author, Matthew Tilmann on Twitter