Tokyo (Japan) - Sharp is working on new LCD panels that could bring sharper, faster-moving images to cell phone screens, according to a Reuters report.

Sharp says the new LCD have a response speed that is three times as fast as regular LCD panels, and it would only cost about 30% more to produce. The screens would offer clearer pictures for media applications like mobile TV and games, says Sharp.

The new panels will be available for manufacturer sampling by the end of the year. Sharp says by 2009 it expects to earn $836 million in sales from the new LCD technology.

The announcement could pose another threat to organic LED (OLED) technology, which aims at replacing traditional LCD but asks for a significant production premium. OLED gained early support from suppliers in the early 2000s but has since fallen because of advancements in cheaper technologies.