The latest report from DigiTimes suggests that Apple might be relying on in-cell touch panels for the sixth generation iPhone. The most likely manufacturers are Sharp and Toshiba Mobile Display, stated sources from Apple's supply chain.

Apple was impressed by "an improvement in yield rates" and has decided to work with the Japanese manufacturer responsible for developing the in-cell touch panel technology. Toshiba's innovation relies on a new screen technology that makes the panels thinner, lighter and more responsive.

A circuit runs through the LCD screen and allows it to detect touch input.  The devices employing this technology are not only 43 per cent thinner than their counterparts are, but also have better responsiveness.

Both Sharp and Toshiba will ramp up production for in-cell touch panels to start in the upcoming months. If Apple is to change the display technology for the next iPhone, the current suppliers could be faced with a significant blow.

"The adoption of the in-cell touch panels, if realized, will also have a significant impact on the operations of Apple's current touch panel suppliers TPK Holdings and Wintek, which are specialized in the production of glass on glass touch solutions," as reported by DigiTimes.