Set to get slimmer: The latest Apple gadget will feature 'in-cell technology' which has touch sensors in the screen instead of another layer on top as it is now A factory in Taiwan has begun production of components for Apple's eagerly awaited iPhone 5, expected to go on sale this autumn. Pegatron - one of Apple's normal suppliers - has begun production of the new phone already, according to a report in DigiTimes. The manufacturer will also be working on a smaller iPad later in the year. Details of the upcoming handset are scant, although it is expected to have a larger screen than the current iPhone. The new iPhone will have an even thinner screen thanks to advances in LCD manufacturing, according to reports. The latest Apple gadget will feature 'in-cell technology' which has touch sensors in the screen instead of another layer on top as it is now. Further sources in Apple's supply chain confirmed that the tech giant will drop the wide dock connector used in the company's gadgets for the best part of a decade in favour of a smaller one, a change likely to annoy the Apple faithful but which could be a boon for accessory makers. The iPhone 5, Apple's next generation iPhone expected to go on sale around October, will come with a 19-pin connector port at the bottom instead of the proprietary 30-pin port 'to make room for the earphone moving to the bottom', two sources familiar with the matter told Reuters.