Although the iPhone won’t be getting an integrated SIM-card system The Telegraph now adds to their report that Apple is set to release a slightly updated iPad WiFi + 3G model with an integrated SIM-card system instead of its current micro-SIM card system. The reason Apple can do this with the iPad is because the device is not carrier-subsidized.
Their report also notes that this new iPad will lose the lock switch on the side and become a mute switch, but we already know that because the change will be happening this week with iOS 4.2. In terms of this new iPad launching around the late December/early January timeframe we are a bit skeptical. It would make much more sense for Apple to release an all new set of iPad models around March or April.