Apple will deploy fingerprint sensor with the iPhone 5S employing the services of a new manufacturing player, paving the way for a September or October release date of the new iOS 7 smartphone, new reports said.

The global rollout includes the rumoured budget iPhone, according to KGI Securities analyst Ming-chi Kuo, adding that to ensure a pre-holiday launch for the two handsets the tech giant gave more production roles to Taiwan-based firms like TSMC and Xintec.

Specifically, TSMC will be tasked to produce the fingerprint sensor that will be part of the new Apple security features to be unleashed beginning with the iPhone 5S and likely making it too on the rumoured iPhone 6.

The new technology will be embedded on the iconic Home button found on every iOS devices.

Mr Kuo told MacRumors that "TSMC is a reasonable foundry choice for Apple as it used to serve AuthenTec."

AuthenTec, of course, is the biometrics security specialist acquired by the tech titan last year, triggering the speculation that upcoming Apple devices will sport solid security features.

The new KGI assertion came as rumours emerged last week, suggesting that Apple is reconfiguring the camera features of the iPhone 5S to deliver high-quality images even in poor lighting conditions.

The sensor for the 5S' main sensor will be bumped up to 12MP plus HDR capabilities, the reports said.

While there were hints of slight delay, blog reports insisted too that Apple will certainly unwrap the iPhone 5S and its budget edition right before the 2013 holiday season kicks in.

In a related report, an image of the cheaper iPhone hit the Net this week, showing off a polycarbonate case with a 3.5-inch Retina display.

Geared for the price-sensitive market, the more affordable Apple smartphone will retail at around $US300, according to CultOfMac, with colour options of black, white, blue, red and yellow.

It is powered by an A5 computing chip and should be in store shelves by October 15, the same report said.