iPhone 5 8-megapixel camera being built in Taiwan

The iPhone 5 inches closer to shops with the news that its camera is set to roll off production lines in Taiwan ready for a launch any day.

The Taiwan Economic News reports that two Taiwanese companies are to build the 8-megapixel camera on the next generation of Apple's smash-hit smart phone. Largan Precision and Genius Electronic Optical are the lucky pair.

Largan and Genius supplied the optics for the current model from Apple, the iPhone 4. That phone sports a 5-megapixel camera. The hotly anticipated and much-rumoured iPhone 5 is expected to increase that to 8 megapixels, with features including face detection.

One persistent rumour is that there will be not one but two iPhones: a cheaper version, possibly called iPhone 4S, in September, and a full-blown sequel possibly named iPhone 5 in October.

Something is definitely happening: phone shop staff are getting staff training and phone networks are even accepting orders for the as-yet-unrevealed phone.

Meanwhile Apple is reported to have lost a prototype in a San Francisco bar, only to retrieve it with the aid of local police in an echo of a similar incident involving the iPhone 4.

The new iPhone will be powered by iOS 5, the latest version of Apple's software for iPhone, iPad and iPod touch. It includes a shortcut to the camera on the lock screen for instant snappage. You'll also be able to pinch with your fingers on the screen to zoom in and out, and the volume up button on the side of the phone is now a shutter button too. When you've captured your snap, basic editing will be available in the phone, including red-eye correction, cropping and rotating.

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