Apple reportedly will change the screen size of iPhone to 4-inch for its fifth generation iPhone to compete with the Google Android platform in the 4- to 7-inch smartphone market, according to upstream component suppliers. The component suppliers noted that the production lines for Apple's next generation iPhone have begun testing, and Apple is interested in expanding the screen size to 4-inches to support the tablet PC market, as the vendor only has a 9.7-inch iPad in the market. In fact, smartphones that adopt the Google Android platform are mainly 4-inch and larger models. Samsung Electronics' Galaxy S and Google's Nexus S adopt 4-inch panels, Sharp adopts 5.5-inch for its smartphone, and Acer plans to launch a 4.8-inch smartphone. With Apple joining the 4-inch and larger market, 4- to 5.5-inch will become the major battlefield for smartphones and further change the industry dynamics for small- to medium-size panels. What is worth noticing is that Dell has re-defined the market position of the Dell Streak 5 – which was originally focused on the tablet PC market – as a super phone. The Dell Streak 5 uses a 5-inch panel which stands in the gray area between tablet PC and handset segments and indicates there is an overlap in the market for 4- to 7-inch panels. Smartphone vendors' choice of using increasing screen sizes and specifications has helped to generate some change in the panel industry. Currently, bonding TFT with touch panels has become an important factor to keep orders from clients. For AU Optronics (AUO), part of its 4G and 5G capacity has moved to touch panel production covering touch sensors, TFT panels to modules, and the panel maker is also working with its subsidiary Cando to develop in-cell touch panel to compete in the market. Chimei Innolux (CMI) is also producing touch panels at its 4.5G plant and part of its 5G plant through front to back-end method, and is also producing iPhone and iPad panels through IPS technology. Panel makers noted that in addition to touch panels, AMOLED is another important development in the smartphone market. AMOLED supply remains in shortage, and Samsung's subsidiary Samsung Mobile Display (SMD) is the leading player in the market with the largest capacity, while LG Display is actively following behind and AUO and CMI and actively becoming involved in the market. Source: DigiTimes