HONG KONG—Apple Inc.'s (
AAPL)
next iPhone, currently being manufactured by Asian component makers,
will use a new technology that makes the smartphone's screen thinner,
people familiar with the matter said, as the U.S. technology giant
strives to improve technological features amid intensifying competition
from Samsung Electronics Co. (
005930.SE) and other rivals.
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. (
LPL) are currently mass producing panels for the next iPhone using so-called in-cell technology, the people said.
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The
technology integrates touch sensors into the LCD, making it unnecessary
to have a separate touch-screen layer. The absence of the layer,
usually about half a millimeter thick, not only makes the whole screen
thinner, but the quality of displayed images would improve, said
DisplaySearch analyst Hiroshi Hayase.
The current iPhone 4S is 9.3 millimeters thick, according to Apple's official web site.
For
Apple, the new technology would also simplify the supply chain and help
cut costs as it would no longer have to buy touch panels and LCD panels
from separate suppliers.
Technological progress at LCD makers
such as Sharp, Japan Display and LG Display is crucial for Apple, given
that Samsung has been pushing its organic light-emitting displays as one
of the unique features of its Galaxy phones. Samsung's flagship
smartphone, the Galaxy S III, comes with a 4.8-inch OLED screen and is
thinner than the current iPhone.
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The
vast majority of OLED screens used in mobile devices today are supplied
by Samsung. OLED screens, which don't require backlighting, tend to be
thinner than conventional LCD panels.
While Apple and Samsung
together dominate the lucrative market for high-end smartphones, the
companies are under constant pressure to meet high expectations for
more-powerful, capable devices that are easier to carry.
A
thinner screen in the next iPhone could make the whole device slimmer,
or make extra room available for other components such as batteries. But
in-cell touch screens are harder to manufacture than conventional LCD
screens. The people familiar with the situation said that LCD makers are
finding the manufacturing process challenging and time-consuming as
they scramble to achieve high yield rates.
Analysts have said that the new iPhone is expected sometime in the fall.
In
May, people familiar with the matter said that the new iPhone will
likely come with a screen larger than the current iPhone's 3.5-inch
display. A thinner screen could help offset an increase in weight due to
the larger size.
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The
LCD industry has been working on the in-cell touch technology for
several years. For LCD panel makers like Sharp, Japan Display and LG
Display, Apple's iPhone provides the environment where they can
demonstrate their latest technological progress to show that LCD screens
can continue to evolve and stay competitive against OLED displays. In
the meantime, Sharp, Japan Display and LG Display have also been
developing OLED displays.
At the same time, the adoption of
in-cell technology is bad news for makers of conventional touch panels
used in many smartphone screens now. Taiwan's Wintek Corp. (
2384.TW) and TPK Holding Co. (
3673.TW),
which supplied the touch-panel layer of the iPhone 4S screen, didn't
get orders for the next iPhone, people familiar with the situation said.