Till now iPhone 4 has lead the pixel density war with its 327ppi (pixel per inch) Retina display. However, that is going to change now as Toshiba showcased a 367ppi display for smartphones at SID 2011. The new display is not only higher in pixel density, but also better in color reproduction (at NTSC 72%) with higher contrast ratio (1000:1) than the iPhone’s Retina display. And Toshiba claims that they can further improve the display by increasing the color gamut to 92% of NTSC and contrast ratio to 1,500:1.

After seeing the new display in action Engadget’s Michael Gorman wrote “It's one thing to read about a 367ppi screen that shows native 720p video, and it's quite another to experience it in person. We can report that it is, in fact, as awesome as it sounds -- onscreen images were clear, crisp, and chromatically brilliant.”

Engadget also reported that “Toshiba confirmed the display will come to the market this year” and Engadget believes it will be an Android handset. But we think they are wrong because last year Apple invested over $1 billion with Toshiba to build a factory for manufacturing high-resolution LCD displays. Furthermore, there are rumors that Apple will be switching to 4-inch screen for next generation iPhone 5.

We have also heard that in iOS 5 Apple will bring complete resolution independence to iOS, meaning that depending on display resolution will be a thing of past. And this would allow Apple to go for more incremental upgrades to display resolution, rather than double the display resolution every time they want to improve the display technology on their iOS devices.

So, if we combine all the above points it indicates that the 4-inch Toshiba display is heading iPhone 5’s way and not for the little green bots.