Taiwanese publication Economic Daily is reporting that Apple will likely use in-cell display technology provided by Japanese panel makers rather than Taiwan-based suppliers for its next-generation iPhone 5 in order to achieve a thinner profile for the device.

The publication cites Taipei-based David Hsieh, vice president of DisplaySearch and in-charge of the Greater China market, quoting that iPhone 5 is expected to use thinner displays based on in-cell technology, which will benefitJapan’s Sony Corp., Sharp Corp. and Toshiba Corp. On the other hand,Taiwan’s TPK Holding Co. and Wintek Corp., use on-cell technology in their touch panels supplied to Apple.

The iPhone 5 is expected to use thinner displays based on in-cell technology, which will benefit Japan’s Sony Corp., Sharp Corp. and Toshiba Corp. due to their leads in this field, said David Hsieh, vice president of DisplaySearch in charge of the Greater China market.

“Of course, Taiwanese panel makers are also developing this technology, but Japanese suppliers still run faster,” Hsieh told reporters on the sidelines of the DisplaySearch Taiwan Flat Panel Display Conference.

Display touch panels which use in-cell technology can be made thinner because the touch sensors are actually placed inside the color filters rather than on top of them, he explained.

I would not be incredibly surprised if this actually happened. But the fact that the source of this rumor is FocusTaiwan, with no proven history – I can’t say I’m very confident in the potential they nailed this rumor. Such a report has to be taken with just another rumor.

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