With the competitive nature of the smartphone market these days, it's difficult to choose which handset is the best for you. Hopefully this comparison between the AMOLED and LCD screens will help you make a more informed decision.
The AMOLED or Active Matrix Organic Light-Emitting Diode screens work by illuminating individual pixels across the panel. This means that typically AMOLED screens are brighter and more vibrant while blacks are darker. The design of individual pixel illumination also allows for more efficient battery consumption. With that said, AMOLED screens suffer over time as individual pixels age and tend to seem more yellow. However, this has become less of a problem with constant improvement of the technology.
You will find these displays in almost all Samsung phones as well as Motorola and Nokia.
The IPS LCD or the In-Plane Switching Liquid Crystal Display is your second option. This screen technology works with polarized light which is passed through a colour filter. Filters on the top and side axes will then control the brightness and contrast and whether each pixel is on or off. The necessity of a separate backlight forces devices to be slightly thicker than their AMOLED counterparts, but with the advancement of the technology this is becoming less of a problem. With the backlight essentially illuminating the entire panel contrast and blackness often suffer, but the pixels can seem to be packed closer together, giving a sharper, more natural colour.
Apple favours the IPS LCD display for its sharpness and clarity. Sony also prefers to use this technology for their Xperia range.
Neither display type can really be considered better than the other. Both are excellent screens, and you will have to determine which one better suits your preferences.