Apple is cutting its orders of iPhone touch panels, indicating that it's preparing to transition to its next handset, according to the DigiTimes.
Apple's touch-panel suppliers, TPK Holding and Wintek, will see shipments of the components decline sequentially by 15 percent to 20 percent during the second quarter, according to Taiwan-based DigiTimes, citing sources. The publication's sources say Apple's current iPhone line is "moving into the final stage," and the company is moving to a new technology, called in-cell touch, for the iPhone 5.
In-cell touch technology has been rumored to be coming to the iPhone 5 for well over a month. The offering delivers multitouch technology into the thin-film transistor LCD manufacturing process, eliminating the need for more glass and sensors. The result is a thinner, lighter screen, among other benefits.
Unfortunately for TPK and Wintek, the companies won't be making the in-cell touch panels for Apple, according to DigiTimes.
Aside from the new touch-screen technology, Apple's iPhone 5 is rumored to be launching with 4G LTE support, a 4-inch display, and a new Dock connector featuring fewer pins than the current 30-pin port.
CNET has contacted Apple for comment on the DigiTimes report. We will update this story when we have more information.