The new rumour surrounding Apple's iPhone 5 is it will be the thinnest iPhone yet.

The Cupertino-based company will use its latest technology to make iPhone's screen thinner. According to the people familiar with the matter said that the tech giant will improve the technological aspects and features of the device to intensify the competition with rival companies such as Samsung.

Sharp, LG and Samsung are busy making panels for the new iPhone. According to DisplaySearch analyst Hiroshi Hayase, the new screens will integrate touch sensors into the LCD. Thus, a separate touch screen is no longer needed for the phone.

The absence of the layer, usually about half-a-millimeter thick, not only makes the whole screen thinner, but improves the quality of displayed images, he quickly added.

Currently, iPhone 4S is 9.3 millimeters thick. One of the advantages of the thinner screen, is it will reduce the cost of production since there is no need to buy touch panels and LCD panels from separate suppliers.

New rumors of iPhone 5's release revealed that the much awaited smartphone will be introduced on August 7, which is different than the earlier reports and theories that the device will be launched in September or October.

A blog in Japanese language claimed that the upcoming iPhone 5is already in production. This claim is backed up by Macotakara's blog that cites listings for iPhone 5 cases on China's Alibaba.com. Macotakara has a good reputation when it comes to Apple rumors.

Below are the other rumored features of the new iPhone.

NFC - Rumors suggest that Apple will be equipped with Near Field Communications, which allows devices to communicate or contact another device in close proximity. It almost works like Bluetooth. Moreover, NCF is the entry point for making mobile payments.

Mobile Payments - An evidence of the possible development of mobile payment system is the new iOS 6 feature, Passbook. With this feature, tickets are now digitized with this new app. This is complete with QRCodes and 2-D barcodes. Gain access to the movies theater and sporting events by simply flashing your iPhone to the ticket counter.

4G/LTE - 4G/LTE support is one of the top possible features of the new iPhone. iPad 3 released last year already support 4G connection. It is deemed impossible that the new iPhone will also support it.

A6 Chip - Earlier reports said that it will sport an A5X Chip like the iPad 3. However, new reports claimed that faster A6 chip will be making a show in the iPhone 5.

Micro-dock connector - Apple iOS devices was known to sport 30-pin dock connector. However, the new iPhone 5 is speculated to be equipped with smaller 19-pin dock connector. This will give more space for other specs to be included in the device.

China Mobile collaboration - Apple is said to be aiming for a global release with possible collaboration with the largest mobile network in the world.