Digitimes is reporting... what many others have been rumoring about the next gen iPhone and it's camera. 3.5 megapixels, according to their "market sources" are bound to get bundled in if/when Apple shows off new iPhone 2,1 hardware at WWDC this year.
What's even more fantastical is that a 5 megapixel camera is also rumored to be on its way to another Apple product this year. New iSight for the built-ins? Heh. That's no fun. Gotta be for the next next gen iPhone 3,1, right? Or the iTablet? iNetbook? iYaiyai?!
Rumor season has only just begun folks!