The next generation iPhone will sport a 5-megapixel camera if the latest reports from DigiTimes are to be believed. Last year, the iPhone 3GS improved imaging capabilities with the addition of autofocus and video using a 3.2-megapixel camera.
OmniVision Technologies is expected to increase production of its image sensors in 2010 to fulfill demands for Apple's products, including the iPhone. Orders for 5-megapixel sensors have already been received by OmniVision in advance of the iPhone 4.0 launch next year.
The iPod Nano with video also uses OmniVision sensors in its camera. Recently rumors have been revived of a future iPod Touch model including a camera as well. Overall, OmniVision expects to ship up to 45 million image sensors to Apple in 2010.
Further improvements in the iPhone camera will make it even more appealing as an everyday photo taking device, possibly eroding market share for stand-alone cameras and camcorders. Higher quality means more storage space will be used, however the next-generation iPhone is likely to feature larger memory chips as well.No word on whether or not Apple has considered including a portable flash along with the higher quality image sensor.