The Apple logo.
IN PHOTO: The Apple logo is pictured at a retail store in the Marina neighborhood in San Francisco, California April 23, 2014. REUTERS / Robert Galbraith

In supplying the A9 application processor that will power the iPhone 7, said to be scheduled for a 2015 release date, it remains a toss between Samsung and Taiwan Semiconductor Manufacturing Company (TSMC), a new report said.

According to Taiwanese publication DigiTimes, the battle on which firm will corner the bulk of Apple's A9 order contracts for next year is far from over. "Apple is expected to finalize the A9 chip orders by the end of 2014," the report said.

No definite supplier yet

The same report essentially downplayed the suggestions made by paper from South Korea, where Samsung is based, that the Apple friend-foe is a shoo-in for around 80 per cent of the total A9 shipments that Apple will require for mass producing the next iPhone in 2015.

DigiTimes noted the apparent flip-flopping on Apple's part. Prior to Samsung's supposed re-entry as Apple key supply chain partner, it was reported earlier in the year that TSMC got the assurance of fabricating the next-generation A-series processor for the iPhone 7.

But the alleged new agreement between Apple and Samsung appears to tell otherwise. It could turn out that TSMC will be relegated as back-up A9 supplier because Samsung is dangling an offer that Apple cannot refuse.

Bidding war

In order to win back Apple's favour, Samsung has committed to deliver A9 chips built around on 14nm FinFET processes that faster, mightier and more energy efficient than its predecessors. The icing to the cake is a more "acceptable quote."

That would lower production cost for Apple, which no doubt is a proposition very hard to resist for the tech giant.

DigiTimes, however is betting that Apple is not anywhere close to final deal with either Samsung or TSMC.

The likely scenario is - Apple will allow the two suppliers to engage in a fierce bidding war trying to out-spar each other. TSMC will rely with its good track record of producing quality chips and shipping them on time.

Samsung, for its part, is seen to counterpunch by offering a lower price while matching what its rival can do.

As for Apple, the company, according to the DigiTimes commentary, "is being noncommittal in order to squeeze out the most profit," for its next flagship.

Now it remains to be seen if the better A9 deal that sooner or later Apple will wring from Samsung or TSMC will translate to a cheaper iPhone 7 on its rumoured release date in 2015.