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Apple will most likely continue using in-cell touch panels in its next generation iPhone

Apple will most likely continue using in-cell touch panels in its next-generation iPhone due to increased yields for the technology, according to industry sources.

The sources said Apple has been investing a lot of time and money into increasing the technology's yields, which have now surpassed 70%. The technology also allows Apple to make the kind of thin and light iPhones it is trying to market, making OGS technology an unlikely possibility for use in the next-generation iPhone, added the sources.

OGS technology also decreases border strength on handsets by 30% compared to in-cell technology, is less durable, and has higher costs compared to in-cell technology, making it even more likely that Apple will use in-cell touch screen technology in its next iPhone, said the sources.

Meanwhile, market observers said Apple is likely to release its next-generation iPhone in the second half of 2013.