Apple is reportedly testing Touch On Display screens for a future generation of iPhone. The China Times reported (Google translation) Thursday that Apple supplier Innolux has shipped samples of TOD displays to Apple for testing and possible certification.
For the iPhone 5, which was released in September of 2012, Apple moved to in-cell displays where the touch sensors are embedded in the same cell with the display. This is a nifty solution because it allows for thinner displays, and thinner displays mean thinner devices.
According to The China Times, interference issues with the technology Apple is currently using has led the company to look for other solutions. The TOD samples produced by Innolux, "combine the advantages of thin and tough," offering a touch panel thickness of 0.5mm.
It will also, "achieve better optical performance, and can do a 10-point full-featured multi-touch, [with] good sensitivity" compared to other Capacitive Touch displays.