Apple's next generation will reportedly adopt in-cell touch panels developed by Sharp and Toshiba, according to a DigiTimes report.

An improvement in yield rates of the in-cell touch panels at Sharp and TMD has persuaded Apple to choose to cooperate with Japan-based panel makers, the sources noted. Sharp will produce the in-cell panels at its 5.5G lines, while TMD will utilize its 6G lines for production, indicated the sources, adding that the two makers will begin to ramp up in-cell panel production in the second quarter of 2012.

CNET notes that "in-cell multitouch technology integrates touch into the thin-film transistor (TFT) LCD manufacturing process, obviating the need for additional sensors and glass. This reduces the weight of the device, among other benefits."

via iclarified