The has been rumors that the next iPhone has already in full production. Now there is a new report that the next iPhone will feature all new in-cell touch panels, according to a source from the Apple's supply chain.

AppleInsider reports:

“Touch panel maker Wintek on Tuesday announced that its June sales were down an unusually high 33.6 percent month over month, signaling that the company may have lost out on key orders for Apple’s next-generation products, namely a new iPhone rumored to have in-cell touch panel technology.”

The piece goes on to say that this is the largest month-over-month sales drop Wintek has seen in 5 years — since the original iPhone debuted. So this certainly falls in line with previous reports that Apple has tapped Sony to provide in-cell touch panels for its new handset.

As we’ve explained before, in-cell touch screens are substantially thinner than (the current) on-cell panels. And by using them, Apple would be able to add an LTE radio, a bigger battery, and other upgraded components to the next iPhone, without making it any thicker.

The sixth-generation iPhone is widely expected to land in October of this year, with a 4-inch display and several other enhancements over its predecessor.

Sony, Sharp, and Toshiba have reportedly been tapped to produce the next generation in-cell touch panels.

Ming-Chi Kuo of KGI Securities says that the new touch panels will help make the upcoming iPhone at least 1.4 mm slimmer.

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