Apple is still at least 16 months away from launching the iPhone 7 based on the company's annual upgrade cycle, though rumors about the device continue to fly thick and fast. Now a new report from JPMorgan Chase & Co claims that the tech giant will stick to LCD panels for the iPhone 7.

Recent reports have suggested that Apple plans to launch three new iPhone models - the iPhone 6S, iPhone 6S Plus and iPhone 6C - in the second half of 2015 for which the company will source the display panels from Japan Display, LG Display and Sharp. Japan Display recently announced plans to set up a new $1.4 billion display plant in central Japan, in which Apple is said to have made significant investments for securing supplies of improved LCD panels for its smartphones.

According to the report, Japan Display's new LTPS LCD plant funded by Apple's recent billion-dollar prepayment could have the capacity to produce nearly 100 million 5-inch LTPS LCD panels annually. Given Apple's huge investment in Japan Display's new LCD plant, the company is unlikely to replace LCD technology with OLED in iPhone 7 and will continue with the traditional panels for the upcoming device, claims the report.

Moreover, Apple's biggest supplier Foxconn Technology Co. Ltd. is also said to be investing $2.6 billion in a new LCD facility in Taiwan. This makes it even more unlikely that Apple will switch from LCD to OLED technology for the high-volume iPhone lineup. The new report by JPMorgan Chase & Co. is in contrast to other recent media reports claiming that the iPhone 7 would feature OLED display, marking a major shift from the traditional LCD screens. The iPhone 7 is expected to arrive in late 2016. Until then, stay tuned for the latest news, rumors and specifications of Apple's upcoming device.