Apple's (as yet unconfirmed) plans to make an iPhone with a built-in, programmable SIM chip is getting a strong push-back from European carriers who would have the most to lose from the shift away from physical SIMs. The Financial Times of London reports that carriers are saying Apple may provoke a "war" if they pursue this technology, and that they may decide to just stop offering iPhone subsidies in protest. Meanwhile, the industry group representing carriers is working on its own embedded SIM.

As we reported a few weeks ago, Apple is said to be working with SIM-card manufacturer Gemalto to make a programmable SIM-on-a-chip that would let consumers buy a phone directly from Apple and activate it with the carrier of their choice via iTunes.

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