Samsung was ambushing Apple at a temporary "pop up" store offering its new Samsung Galaxy S II smartphone for just A$2 to the first 10 customers each day in the run-up to the rival iPhone launch.  Just a few doors down from the Apple store in Sydney, where a long line of fans eagerly awaited the sale of the new iPhone 4S, another throng was gathering at a Samsung store.

Samsung Electronics delayed the unveiling of its latest smartphone, the Nexus Prime, by a week to Wednesday as a sign of respect following the death of Apple's co-founder Steve Jobs -- Apple is Samsung's biggest customers for microprocessors.

What makes the battle so captivating is that the two companies are such contrasts. Apple is known for innovation and big ideas that create whole new markets. What Samsung lacks in ideas, it makes up for with a sleek production system that is lightning fast in bringing new products to market.

Apple, the world's largest technology company with a market value of $391 billion, is counter-punching hard as the holiday sales season approaches.   It is expected to present a positive short-term picture -- sparked by roaring sales of its iPhone and iPad -- when it reports results for the July-September period on Tuesday. The company moved 4 million iPhone 4S units in three days -- more than double its predecessor -- despite lukewarm reviews.

On the same day Samsung was luring away potential Apple customers in Sydney with the Galaxy promotion, an Australian court slapped a temporary ban on the sale of Samsung's computer tablet, named the Galaxy Tab, in the country, saying Samsung infringed on Apple pate