Apparently Samsung has partially lost out on one of the companies largest customers as according to the boy genius report, Apple is to discontinue using Samsung designed processors in the new iPhone handsets.

The guys gain this iPhone processor change information via the Korea Times that cites an anonymous industry exec, and that the new iPhone will now run on a modified version of Apple’s A4 processor that is capable of handling 720p playback.

It’s probably not all bad news for Samsung as the article says Samsung will be entrusted with making the chip but as Apple keeps mobile processor design in house it will affect Samsung’s bottom line.

Without any further details at this time it is difficult to comment on just how the iPhone A4 will differ from the iPad A4 processor, but battery life and size could be a couple of key obstacles., but the upgraded iPhone is expected to surface in the US by the first half of this year.