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France Telecom CEO Stephane Richard said in a recent interview that Apple has agreed on a compromise with wireless carriers to use a smaller SIM card instead of an e-SIM in order to make the next-generation iPhone even smaller and thinner.



From Apple Insider:
According to Richard, a compromise has been reached between Apple and the carriers, resulting in a new SIM card standard even smaller than the micro-SIM used in the iPhone 4. Last week, another executive at Orange indicated that Apple had submitted a new SIM form factor to the European Telecommunications Standards Institute.

Apple's efforts to redesign the SIM card are apparently part of its ongoing quest to free up space in the iPhone and reduce the device's size. "We are going to work with them in order to standardize a new format of SIM which takes into account our needs with security and authentication and also is compatible with their wishes in terms of size," Richard said.
  Orange CEO: Apple's next iPhone will be smaller, thinner with new SIM