Kasper Jade writing for AppleInsider:

People familiar with Apple’s initiative claim the electronics maker is seeking allotments of LED camera flash components in the tens of millions for delivery during the 2010 calendar year, meaning future iPhones — and possibly the iPod touch — are the most likely recipients of those parts, due to their sales volume.

Poor camera quality is something that the iPhone has been criticized for in the past. The 3.2MP camera with auto-focus in the current iPhone 3GS was a huge leap in the right direction. But, anyone who has tried to take a picture with their iPhone in low light knows an LED flash would be a big deal.

AppleInsider isn’t the only one talking about the next iPhone. Bloomberg reports Goldman Sachs analyst Robert Chen who said the following in an interview:

Apple’s going to put a lot of innovation, not just on the hardware, but also on the software of the new iPhone.

Chen mentions an improved camera and a touch-sensitive casing as some of the new features. He compared the touch-sensitive casing to that of the Magic Mouse’s.

I can’t really imagine what the new case would be used for and it seems a little too far fetched to me. But then again, if you told me two years ago that Apple was going to release a one-button mouse without a scroll ball, I would have thought you were crazy.