European carriers threaten Apple over embedded SIM option

As reported, Apple is developing a built-in SIM card for the Phone. Such embedded SIM card allows users to activate their devices with a broad array of carriers. Moreover, with such card, customers could insist on shorter-term contracts, using the ability to easily switch between carriers as leverage. So, some European carriers (Vodafone in the UK, France Telecom and Telefónica in Spain) are threatening Apple to withhold their iPhone subsidies if the company deploys the technology on the iPhone. Apple was accused in gain control of carriers’ relationship with their mobile customers. This technology allows customers to sign up for mobile service directly on Apple's website. It could allow customers to switch more easily from one to another and even lead to a "war" between operators and Apple. As estimated, Apple’s global iPhone sales could take a 12 percent hit if European carriers carried out their threats.