The next-generation iPhone may not have a fingerprint scanner on the back after all. Reuters/Regis Duvignau

Rumors have suggested the iPhone 8 will feature an embedded Touch ID in its screen display, but an analyst says Apple is undecided about integrating the technology into its upcoming device, Apple Insider reported Wednesday.

The OLED screen with embedded Touch ID is “still being worked out,” Cowen and Co. analyst Timothy Arcuri said in a memo obtained by Apple Insider.

Read: iPhone 8 Cases Pre-Order: Images Show Bezel-Less Screen, Embedded Touch ID, More Features

The company will decide on three options this month to tackle the issue: thinning the cover glass over a sensor area, creating a pinhole through the glass for an optical or ultrasonic sensor or integrating a “film” sensor into the iPhone’s screen using capacitive or infrared technology, the analyst said.

No matter which option Apple adopts, Arcuri said there will be no shipments of the iPhone 8 until October, adding the iPhone 8 could see a one- to two-month delay. Despite the delayed release date, the analyst predicts Apple could sell 90 million units in the holiday quarter.

Arcuri said in April that Apple was having trouble with the embedded Touch ID.

"For the 5.8-inch OLED version, the biggest bottleneck remains integrating an under-glass fingerprint sensor into the display — the current yield rate of Apple's in-house AuthenTec solution remains low and AAPL seems unwilling to use other vendors' products," Arcuri said at the time.

He gave Apple three solutions for the problem, which included moving the Touch ID to the back of the device, like the fingerprint ID on the Samsung Galaxy S8. However, he noted that wouldn’t be as user-friendly. Alleged leaks and schematics of the iPhone 8 show the Touch ID on the back of the device while others don’t, adding more confusion over the feature. Recently, case manufacturer Olixar revealed its line of iPhone 8 cases, which show no sign of a Touch ID on the back of the gadget. Olixar reportedly based the design for the cases on information and schematics acquired through its factories and contacts.

Read: iPhone 8 Feature Rumors: Wireless Charging, Waterproof, 3D Sensing Lenses Confirmed By Apple Suppliers

Another solution would be to ditch the Touch ID and rely on face recognition. KGI Securities analyst Ming-Chi Kuo said in February the iPhone 8 could come with a 3D camera, which also would support augmented reality capabilities. This month, Apple supplier Largan Precision confirmed it would ship lenses for 3D sensing modules in the second half of this year. Although the company did not specify the orders were for Apple, they are believed to be for the iPhone company.

Arcuri said Apple also could delay the production of the 10th anniversary iPhone, but still announce it alongside the iPhone 7S and iPhone 7S Plus.

Other previously rumored features that could be included in the iPhone 8 are wireless charging capabilities, True Tone display and a vertical dual-camera system.

The iPhone 8, which could also be called the iPhone X, iPhone Pro or iPhone Edition, is expected to be priced at more than $1,000.