According to industry sources, Apple will continue their relationship with Samsung and use their processors in the upcoming iPhone.
The source said that Samsung is ramping up production of quad-core A6 processors, the Apple-designed chip, at their manufacturing plant in Austin, Texas.
This is interesting, in large part, due to the ongoing legal battle between the two companies regarding so-called patent infringements.
Here's what the source had to say about the A6 processors, as quoted in the Korea Times:
Apple has been in talks with Samsung over shipment of its A6 quad-core mobile processor (AP) chips to be used in the next iPhone. It appears that Apple clearly has concluded that Samsung remains a critical business partner.
Samsung Electronics will apply its advanced 28-nanometer processing technology to produce qualified A6 mobile APs. TSMC will provide customized chips with designs from Apple, however, the volume will be very small.
This rumor comes on the heels of news regarding the Samsung/Apple patent wars. According to the WSJ, Samsung is trying to stop the sale of Apple's new iPhone 4S in Japan and Australia. They are asking that the sale of the iPad 2 be halted as well.
Japan and Australia join a list populated by 10 countries that Samsung has petitioned to ban the sale of Apple devices. They have already made filings in France and Italy to stop the sale of the iPhone 4S.
Apple also claims that Samsung has copied their designs and infringed upon their patents and intellectual property rights. Last week, Apple requested a temporary injunction in Australia to stop the sale of Samsung's Galaxy tablet - a request that was granted.
Apple and Samsung have a tenuous partnership, and these legal battles only strain it further. Some analysts think that the patent wars will irreparably damage the relationship - but according to this rumor, Samsung will provide a key part to at least one more Apple product.