The next iPhone is set to include a 5 megapixel camera to help it compete with other Smartphones also being released in 2010.

The iPhone 4 will include technology provided by Omnivision, a company that currently provides Apple with image sensors. Omnivision have predicted that in 2010 they will supply Apple with 40 – 45 million units in comparison to the 21 million sold in 2009.

It’s possible that the iPhone 4’s camera will also feature a flash to allow it to take better pictures.

Anyone looking to upgrade their iPhone and recycle their old one may be tempted to wait for the iPhone 4 to be release later in 2010.