The iPhone 5 features a nano-SIM card.
Apple confirmed this to CNET earlier today. These new nano-SIM cards have been long rumored and they will not be compatible with the micro-SIM cards found in the older iPhone models.
The first reports of Apple shrinking the iPhone's SIM card down started back in March.
An article in the Financial Times stated that Apple wanted to gain an advantage over other smartphone makers by being the first company to have these nano-SIM cards.
MacRumors also reported that Apple had submitted a proposal for a standardized SIM card design that was significantly smaller than the micro-SIM used in the iPhone 4S and iPad in 2011.
Motorola, Research in Motion and Nokia are also trying to implement these "nano-SIM" cards into their devices.
Apple's nano-SIM card will be supported by "most of the European operators," according to MacRumors.
Apple currently uses a "drawer" in its devices such as the iPhone 4S and iPad to protect the SIM. Nokia objects to the idea of the drawer to protect these new nano-SIM cards.
The company unveiled the iPhone 5 earlier today.
The handset has a 4-inch display and a thinner frame than the iPhone 4/4S, a device that has a much thicker design that most of the current Android-powered devices such as the HTC One X and Samsung Galaxy S3.
The iPhone 5 also features a two-tone design with a metal backing. It is completely made from glass and aluminum. It is said to be 20 percent lighter than the 4S.
Hardware has been greatly improved as well, as the device comes with an A6 chip that can perform at speeds twice as fast as the A5 found in the iPhone 4S. It is also 22 percent smaller than its predecessor.