Apple is rumored to be sourcing 12mp camera parts from Wonderful Saigon Electrics of Binh Duong -- love that name -- for use with the next generation iPhone 5s. That's according to Tinte.vn (translated by Google):
X has revealed to me that Apple's next generation iPhone will have a camera 12MP resolution, together with many new features such as camera HDR and night photography better. Be able to take pictures in low-light conditions of the new iPhone is not pulling with Nokia PureView, but popular iPhone camera interface is simple and fast, so the user will not be disappointed with the upgrade This small level.
Tinte has had access to prototype and pre-release iOS hardware in the past, though there doesn't appear to be any hardware in any hands at this point, so it shouldn't be considered anything more than a rumor.
I've only heard that there'll be a "better camera", not that there'd be a higher megapixel camera. Personally, I hope that's the case. Apple doesn't chase the megapixels this time around. The iPhone 5 megapixel count is fine. What we need next are things like sensors with bigger microns, and optical stabilization, and anything that helps take in more photons so we get better images in a wider variety of conditions, from low light to high motion.
We don't need to print posters from our poor quality mobile photos. We need to have our eyes amazed and delighted by all the incredible moments we can "just capture".