Apple is said to be shelving its "in-cell" touch technology found in the iPhone 5 in favor of new display technology expected to debut in the next iPhone.
Referring to supply chain rumors, China Times said the company is currently evaluating technology dubbed Touch On Display from Innolux, which is the firm formerly named Chimei Innolux. Apple listed the latter as one of its component suppliers last year.
The report claims that the reason for the change is due to interference with current in-cell technology where the display and touch are embedded within the same panel. Comparatively, the Touch On technology delivers "good" touch sensitivity with reduced thickness.
The display continues to be one of the most expensive components of the iPhone. A virtual teardown last year found that both the display and touch screen costs Apple $44, which is priced higher than other vital parts including wireless antennas, NAND flash memory and the A-series processor.