The Wall Street Journal writes today that it has heard from people familiar with the matter, sources in the know and all that, that the next iPhone, which we’re calling the iPhone 5, but which may be called something else entirely, will have the benefit of a new technology that will enable it to have a much thinner screen than previous iPhones. The report goes on to say that Japanese LCD makers Sharp, LG Display, and new company Japan Display Inc. are all at present busy beavering away making panels for the newest iPhone, using in-cell technology, which integrates touch sensors into the LCD, so that you don’t need a separate touch-screen layer. Apparently not only does this enable the screen to be thinner, it also results in a marked improvement in the quality of the displayed image. The WSJ says that using this technology will also benefit Apple because it simplifies the supply chain, with Apple needing to buy less panel components.
Source: Apple's Next iPhone Has Thinner Screen, Better Display Quality - WSJ.com