Apple's next iPhone, currently being manufactured by Asian component makers, will use a new technology that makes the smartphone's screen thinner, people familiar with the matter said, as the U.S. technology giant strives to improve technological features amid intensifying competition from Samsung Electronics and other rivals, according to a report in The Wall Street Journal.

Japanese liquid-crystal-display makers Sharp and Japan Display - a new company that combined three Japanese electronics makers' display units - as well as South Korea's LG Display Co. are currently mass producing panels for the next iPhone using so-called in-cell technology, the people said.

A thinner screen in the next iPhone could make the whole device slimmer, or make extra room available for other components such as batteries. But in-cell touch screens are harder to manufacture than conventional LCD screens. The people familiar with the situation said that LCD makers are finding the manufacturing process challenging and time-consuming as they scramble to achieve high yield rates, according to the report.