Apple has reportedly engaged with Samsung to build the chips for the iPhone 7. Samsung has provided the processors for many generations of iPhones, but the two companies are also bitter rivals and are currently engaged in wide-ranging patent lawsuits.
The Korea Economic Daily reported, "Samsung Electronics will supply mobile application processor (AP) to Apple Inc. from 2015. The mobile AP is a brain of Apple's iPhone. Samsung Electronics will supply 14 nano A9 chips that will be used for Apple's iPhone 7. Samsung Electronics had supplied the AP to Apple since 2007 but lost the contract to supply 20 nano AP A8 chips to Apple to Taiwan's TSMC last year when it was engaged in patent disputes with Apple."
Jeffrey Burt with eWeek added, "At the same time, other reports over the weekend indicate that Apple is talking with Globalfoundries about manufacturing chips for the giant device maker in a new fabrication facility in upstate New York. It also could mean that Apple officials, who have talked in the past about reducing the company's reliance on Samsung for its silicon and other components, have decided to take on multiple suppliers."
ZDNet's Ellyne Phneah added, "Apple had stopped buying iPhone screens from Samsung and switched to LG Display, which also supplies some screens used in the iPads. However, reports suggest Samsung will supply Apple with retina display screens for the new iPad range."
Meanwhile, All Things D's John Paczkowski noted, "Last December, U.S. District Court Judge Lucy Koh denied Apple’s request for a permanent sales ban on more than a dozen Samsung devices, tempering an otherwise sweeping jury trial win in its landmark patent case against the South Korean company.... Apple disagreed, and promptly filed an appeal. Now, seven months later, it has finally been given a date to argue its case. The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., said Monday that it will hear oral arguments in the case from both Apple and Samsung on Aug. 9."