Projected capacitive touch panels are often used for smaller screen sizes than surface capacitive touch panels. They've attracted significant attention in mobile devices. The iPhone, iPod Touch, and iPad use this method to achieve high-precision multi-touch functionality and high response speed.
The internal structure of these touch panels consists of a substrate incorporating an IC chip for processing computations, over which is a layer of numerous transparent electrodes is positioned in specific patterns. The surface is covered with an insulating glass or plastic cover. When a finger approaches the surface, electrostatic capacity among multiple electrodes changes simultaneously, and the position were contact occurs can be identified precisely by measuring the ratios between these electrical currents.

A unique characteristic of a projected capacitive touch panel is the fact that the large number of electrodes enables accurate detection of contact at multiple points (multi-touch). However, the projected capacitive touch panels featuring indium-tin-oxide (ITO) found in smartphones and similar devices are poorly suited for use in large screens, since increased screen size results in increased resistance (i.e., slower transmission of electrical current), increasing the amount of error and noise in detecting the points touched.
Larger touch panels use center-wire projected capacitive touch panels in which very thin electrical wires are laid out in a grid as a transparent electrode layer. While lower resistance makes center-wire projected capacitive touch panels highly sensitive, they are less suited to mass production than ITO etching.
Above, we've summarized the differences between the two types of capacitive touch panels. The overall characteristics of such panels include the fact that unlike resistive film touch panels, they do not respond to touch by clothing or standard styli. They feature strong resistance to dust and water drops and high durability and scratch resistance. In addition, their light transmittance is higher, as compared to resistive film touch panels.
On the other hand, these touch panels require either a finger or a special stylus. They cannot be operated while wearing gloves, and they are susceptible to the effects of nearby metal structures.