On a side note, Apple initiated the iPhone 4G project at the end of 2008. According to our sources, Apple actually has another product codenamed N91 for the project, which offers less change from previous iPhones compared with the N90. It's a parallel product to back up the N90 in case there are major delays due to significant modifications in casing, display resolution, digital camera support and so forth.
In regards to AMOLED touch panels, DigiTimes notes that Apple did speak with Samsung Mobile Display about the possibility; however, production capacity was a big issue.
SMD only has the capability to fulfill 50-60% of iPhone orders at the moment even it dedicated all AMOLED capacity to Apple. Of course, cost is always a concern. AMOLED panels cost US$34-38. TN panels cost less than US$10 and IPS panels around US$20.
Finally the report indicates that the Verizon compatible iPhone is still in early testing and won't be available for some time.
Pegatron will indeed assemble an iPhone, but the manufacturing cooperation is still at the EVT (engineer verification test) stage. There are two more stages - DVT (design verification test) and PVT (process verification test) - before mass production. Though there were reports that shipments for this particular device will begin in the second half, we believe 2011 is more likely.