Apple will upgrade the next-gen iPhone’s camera to 3.2-megapixels, according to market sources in Asia.  Manufacturer OmniVision is believed to have won the Apple contract to supply the 3.2-megapixel CMOS image sensor used in the smartphone, which would be a step up from the 2-megapixel unit in both the original iPhone and iPhone 3G.

According to the report, OmniVision will also be supplying Apple with a 5-megapixel CMOS image sensor for use in a product set for release later in 2009.  No details have been given about the nature of this product, which could be a further iPhone iteration or the much-rumored Apple MID.

The report is, obviously, uncorroborated by Apple themselves, and as with any iPhone supplier rumor should be taken with a pinch of salt.  However it is fair to assume that the camera will be one of the main areas of change for the next-gen iPhone, which is expected to be announced in June this year.