Apple has extended its processor supply agreement with Freescale to 2008. This means Freescale will continue to deliver Apple with PowerPC processors till at least 2008. However, the document states Apple is under no obligation to purchase Freescale microprocessors other than work in progress that was in place at the time the agreement was executed.
A few months ago Apple announced it will switch its entire lineup from PPC processors to Intel x86 processors by the end of 2007. There are a few possibilities why Apple signed the agreement with Freescale. It could mean the transition to Intel chips may take longer than expected, or that Apple wants to have some backup in case the transition goes less smoothly as hoped.
But it could also mean Apple still needs Freescale processors for warranty claims from customers.