Apple's favorite rival Samsung is a little ahead of it with rising Galaxy S3 sales and dominance in the smartphone world. In Samsung's newest flagship smartphone, the Galaxy S3, the front part is mainly dominated by a large PenTile AMOLED display. Reportedly, iPhone 5 will pack a better display tech with thinner design using the new In-cell technologgy.

Citing people familiar with the matter, Wall Street Journal reported on Tuesday that iPhone 5 will have a new display tech, which will make the smartphone thinner than the Galaxy S3. In addition, The Journal also confirmed that the smartphone is in production phase and the debut can be expected in near future.

WSJ confirms that the display technology in iPhone 5 integrates touch sensors into the LCD, which removes the need of a separate touch layer. The removal of separate layer will make images appear closer to the user, along with improving image quality and decreasing the thickness of the smartphone.

According to the report, Japanese LCD panel makers like Japan Display and Sharp as well as Korea's LG Display has been assigned the task of mass production of new screen panels.

Samsung Galaxy S3 is 8.6mm thick, while iPhone 4S measure 9.3mm in thickness. According to the report, new display tech will reduce handset's thickness by 0.5mm. Reportedly, Apple is also ditching the traditional 30-pin dock connector for a more compact size, which is likely to be 19-pin micro-dock connector. This move will also help Apple achieving the desired thickness.

We can expect iPhone 5 to measure thinner than 8.5mm.

There is no shortage of rumored features associated with the next generation iPhone. The iPhone 5 is likely to sport a 4-inch display with better resolution. Other rumored features include A5X variant with 1GB RAM and 4G LTE connectivity. The rumors about a new backplate are also on a spree. According to an earlier report, the iPhone 5 is expected to debut on Aug. 7.

Apple is betting on the iPhone 5 to help in regaining smartphone market shares against Samsung. In order to win, Apple will need to throw a significantly thinner and lighter iPhone in the market and reportedly Apple is doing the same.