IPS is an acronym for in-plane switching, a display technology used with liquid crystal displays. In-plane switching was developed to address the limitations of LCD displays from the late 1980s, which used a twisted nematic field effect matrix. The TN method was the only technology available at the time for active matrix TFT (Thin Film Transistor) LCDs. The main limitations of twisted nematic field effect matrix LCDs are poor color quality and narrow viewing angles. IPS LCDs provide better color reproduction and wider viewing angles.
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IPS-LCDs are commonly used in mid-range and high-end smartphones and wearables. All Apple iPhones with Retina Display have IPS-LCDs, as do the Motorola Droid and some TVs and tablets.
IPS LCDs have two transistors for each pixel, while TFT LCDs use only one. This requires a more powerful backlight, which provides more accurate colors and allows the screen to be viewed from a wider angle.
IPS LCDs do not show when the screen has been touched, which you may notice on some older monitors. This is particularly beneficial for touchscreen displays such as those found on smartphones and touchscreen laptops.