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Do we know what type of IPS Apple uses for their current screen? 24-bit AH-IPS? Moving to 30-bit color may be the next logical step allowing them to market Deep Color support, HDRI display, and other catchy terms. Perhaps the blacks won't be blacker, but there would be more shades of black, which may have the similar effect of increasing the perceived contrast to the viewer.Maybe I'm nitpicking (kinda necessary to figure out what Apple might realistically do) but I feel that solution would benefit from better contrast (i.e. blacker blacks). An AMOLED would be ideal but unrealistic, however I suppose there's still plenty of room to improve on the good old LCD front (ala Droid 2: http://images.anandtech.com/graphs/graph4643/40430.png)
http://www.oled-display.net/lg-disp...etina-vs-galaxy-s2-super-amoled-plus-display/
There's an interesting article here where an LG sponsored study claims a 4.5" 1280x720 329dpi variant of the AH-IPS screen used in the iPhone 4 surpasses the Galaxy S2's Super AMOLED+ in color accuracy and power consumption. If that's true, Apple doesn't have much reason to switch, particularly with the power consumption claims. It's interesting too that Apple does have a 4.5" version of the iPhone 4 display available if they wanted it.
I remember Apple mentioning that they arrived at their aspect ratios through lots of trials for usability. 4:3 for the tablet, and 3:2 for the phone. These do seem very versatile regardless of orientation. I don't see them changing.Ah yes, I forgot the reflection light is much greater than leakage light, I suppose that won't really help then. I agree black bars and/or a wallpaper isn't the end of the world, although Apple seems to value full backwards compatibility by quadrupling the number of pixels in the iPhone 4 and, if the rumours are true, the iPad 3. I wouldn't be surprised if they at least stuck to the same aspect ratio for that reason. I think 1200x800 (like the Galaxy Note) and Horizontal Edge-to-Edge (like the rumored 2011 iPhone 5) on a ~4.2" screen would be an interesting solution.
The skeptic in me thinks 3.7" Horizontal Edge-to-Edge with the same 960x640 resolution is more likely for the iPhone 5 though, but we'll see.
Would a 1.5x increase in resolution make things a blurry mess? It would be 3x the iPhone 3GS resolution, which seeing it's currently selling and apps still made for it, is convenient. 1440x960 on a 4" screen would end all resolution and dpi concerns, and quiet the size concerns, although perhaps the technology doesn't exist to produce a 433 dpi screen in volume yet.
Do edge-to-edge screens bring usability problems in terms of accidental inputs from holding the phone? I suppose software can be used to negate some of the stray input, but it might be finicky. It also makes it more difficult to make a case. If it wraps over to the screen you'll lose display area. If you don't wrap, it'll make for very weak cases along the sides of the phone, especially for the rubbery type cases.
It probably makes sense for them to just go with a 3.7" screen at 960x640 and cut down the side bezel by half, just enough for their bumper case. Overall device dimensions may have to increase slightly, but with a tapered design it'll only be for the display face, and won't be noticeable when held in the hand.