The week wouldn’t be complete without one final rumor about the next generation iPhone. Today’s report comes from DigiTimes (via iDownload Blog), which says Apple’s next handset will include in-cell touch panels.

If this story correct, it would mean the next iPhone will be much thinner than the current model, the iPhone 4S. In-Cell panels combine touch sensors and color filters into one layer.

Says the report:

Apple’s new iPhone, which is expected to be released in the third quarter of 2012, is likely to adopt in-cell touch panels rolled out by Sharp and Toshiba Mobile Display (TMD), according to sources in Apple’s supply chain.

An improvement in yield rates of the in-cell touch panels at Sharp and TMD has persuaded Apple to choose to cooperate with Japan-based panel makers, the sources noted.

This latest rumor follows one earlier this week that suggested the “iPhone 5” will include a LiquidMetal backing, instead of glass like its two predecessors.

Keep in mind, DigiTimes hasn’t had the best track record when “reporting” on Apple rumors. Therefore, file this one under the “maybe” category.

Expected to launch sometime this year, the next iPhone will be the sixth from the technology giant.

(Photo: iPhone 5 concept by iDownload Blog)