Technology giant Apple has agreed to make the next-generation iPhone even smaller and thinner by using smaller SIM cards instead of an e-SIM, 9TO5Mac reported quoting France Telecom/Orange CEO Stephane Richard.

All of us told [Apple] it was a bad idea because the SIM card is a critical piece of the security and authentication process, Richard said. It would be very difficult for a telco or carrier to manage the customer relationship. I think that they understood this point. We had a very constructive exchange and dialogue with them, he said.

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, writes Apple Insider.

The person who saw the prototype of the new iPhone said the device was significantly lighter than the iPhone 4 and had an edge-to-edge screen that could be manipulated by touch, as well as a virtual keyboard and voice-based navigation, the report said.