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In a note to clients -- as reported by "AppleInsider" (http://www.appleinsider.com) -- KGI analyst Mingchi Kuo says the next gen iPhone may include a front-facing camera capable of HD resolution.
He thinks Apple will also employ a flip-chip (FC) solution for the front-facing camera with the camera moved to the middle of the phone. Kuo noted that an HD front camera would better suit the 4-inch display that he thinks the next iPhone will have.
Regarding the rear-facing camera, Kuo said Apple will likely retain the 8-megapixel camera while improving the aperture range to go up to f/2.2. The iPhone 4S has a maximum aperture of f/2.4.