Technology giant, Apple has reportedly dropped plans to launch next generation of its iPhone smartphone with a built-in SIM card.

Apple was was planning to remove the traditional slot and offer an embedded card which supports all operators. According to some reports, the plan for iPhone with inbuilt SIM was mainly shelved due to the strong opposition form mobile network providers.

The company had to back down after operators warned that they will stop subsiding pricey iPhone handsets. Some unconfirmed reports also state that Apple tied with SIM-card maker Gemalto to allow users in Europe to buy a phone directly from Apple and make it work through Apple App store.

Meanwhile, Apple might go ahead with the launch the new edition of its popular computer tablet, the iPad 2 with integrated SIM allowing users to avoid huge contract fees that current Apple iPad users have to pay to the operators. Apple might launch the new iPad with integrated SIM in time for Christmas or in early 2011.