The next generation iPhone, called iPhone 5 for the time being, will most likely get some improved cameras. The new camera will offer the same 8 mega pixels, but with offer an improved aperture of f/2.4 to f/2.2 in order to reduce camera module height by nearly 0.5 mm. This needs to be done in order to slim down the next generation iPhone so that it can take advantage of the larger screen and slimmer design.
The front camera will receive the largest improvement. Previous iPhone’s had a very nice rear camera and then a crapy VGA front camera. The iPhone 5 is expected to have an HD front camera to make better use of Apple’s FaceTime. Currently these are all just rumors until we hear an official announcement from Apple. Hopefully it will be at WWDC next Monday. Stay tuned.