Apple may be planning to switch to "Touch On Display" panels from Innolux for the next-generation iPhone, according to the China Times. The panels are allegedly in testing by Apple, and described as being tough, 0.5mm thick, and offering better sensitivity and optical performance. It's thought, however, that Apple may be switching as much because of problems with the panels used for the iPhone 5.
Although complaints have been relatively minimal, the Times suggests that the iPhone 5 shows relatively slow touch response and some interference problems. In recent times, users have noticed that the phone won't register rapid diagonal swipes. That may be because of the particular in-cell touch displays Apple opted for.