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As The Wall Street Journal reports ^[2], Apple will adopt “in-cell” technology in the next-generation iPhone in order to make its screen thinner. In fact, the publication claims that mass production of such panels has already started.

“Japanese liquid-crystal-display makers Sharp Corp. and Japan Display Inc.—a new company that combined three Japanese electronics makers' display units—as well as South Korea's LG Display Co. are currently mass producing panels for the next iPhone using so-called in-cell technology, the people said”.

The “in-cell” technology integrates the LCD with touch sensors thereby removing the need for a separate level of components. Besides reduced thickness, the technology would also enhance the image quality. Also The Wall Street Journal said that it will help Apple reduce the device’s cost by eliminating some component suppliers.

The first report ^[3] on Apple’s interest in applying “in-cell” technology in the next-generation iPhone appeared in April. Analyst from KGI Securities Ming-Chi Kuo took a close look at the “in-cell” technology and suggested that Apple could reduce the thickness of the iPhone 5 by at least 1.4mm compared to the iPhone 4S.

Besides the thickness savings coming from “in-cell” technology, Apple could also use a thinner metal casing and reduce the thickness of the iPhone’s battery.