With virtually zero competition in smartphone market, Samsung's latest flagship model - the Galaxy S3 - is selling like a bonanza sales item. Apple iPhone 4S is the biggest threat to Android smartphones. But this time, it falls short against Samsung's bet. Hence, all eyes are focused on the next iPhone, dubbed iPhone 5, which will eventually be the biggest threat to the Galaxy S3, especially with its new in-cell display technology.

The rumors about the inclusion of in-cell display technology in the next iteration of iPhone date back to April, when the rumor king DigiTimes reported that next iPhone is likely to adopt in-cell touch panels. DigiTimes has a hit-or-miss record when it comes to predicting about iGadgets. As a result, nobody paid any serious attention to DigiTimes' claim. However, after Wall Street Journal claimed the same, there has been a significant increase in iPhone 5's in-cell display reports.

Apple's in-cell display is a big threat to Samsung Galaxy S3 in more than one way. The most important improvement that in-cell panels bring over traditional Super AMOLED and LCD displays is sharper and clearer images. In in-cell screens, image formed on the display pass thorough fewer layers to reach the other end, which will improve the clarity of images by a significant level.Besides

Besides displaying better images, in-cell panels are also thinner and can help Apple shave fractions of a millimeter off the next iPhone. Current iPhone is 9.3mm thick. WSJ claims that new display tech would bring 0.5mm reduction in the thickness of iPhone 5. And, if Apple decides not to go for a thinner iPhone, the reduction in thickness of the in-cell display panels will clear the room for a bigger battery. At the moment, rumors are on a spree that Apple is going to push Lithium Ion battery to its extent in the next iPhone.

According to Forbes, iPhone 5 will have a larger battery than its predecessor. In-cell display panel will save some space inside the chassis for a bigger battery. Reportedly, Apple is also ditching the traditional 30-pin dock connector for a new 19-pin connector to make more space inside iPhone 5.

The present day iPhone - iPhone 4S - isn't considered as a true competitor to the Galaxy S3. The main reason is that Galaxy S3 came out with newer tech after nearly 8 months of iPhone 4S' debut. The Galaxy S3 has a better display and battery life than iPhone 4S. However, the next iPhone can change the rules of the game. If the reports are to be believed, iPhone 5 will have a better display as well as battery life than Galaxy S3 and set a new benchmark in the smartphone industry.