Apple iPhone 6 Rumors: Device To Feature 8 Megapixel Camera With Improved Image Stabilization; Pegatron May Manufacture 50% Of Supplies

Apple's (NASDAQ:AAPL) next-generation iPhone iteration, presumably called the “iPhone 6,” is rumored to incorporate some camera improvements while retaining the existing 8-megapixel camera sensor for its iSight camera, according to a new report from China Post, a news website.

Amid rumors that the iPhone 6 could feature the same 8-megapixel camera sensor, iPhone’s camera module supplier Largan Precision’s (TPE:3008) stock tumbled on Wednesday as investors reacted to speculation that the upcoming iPhone might not get a higher-resolution sensor in the 12 megapixel-16 megapixel range, China Post reported, citing analysts from Nomura Securities.

The report, however, also stated that iPhone 6’s rear camera could feature improved image stabilization, which is expected to reduce blurring associated with the motion of a camera during exposure.

Apple first used an 8-megapixel rear camera in the iPhone 4S in 2011, and incorporated similar camera modules for the iPhone 5 in 2012 and iPhone 5c in 2013. Last year’s flagship iPhone 5s model also featured an 8-megapixel sensor, but got several hardware and software enhancements, such as a larger aperture and dual LED flash.

Meanwhile, yet another rumor about the iPhone 6 surfaced online on Thursday, claiming that Pegatron (TPE:4938), a Taiwanese electronics manufacturing company, could win a contract that would allow it to manufacture half of all iPhone 6 supplies.

According to the report from Taiwan’s Liberty Times, Pegatron has started building a new plant at Kunshan, a satellite city near Shanghai, in order to meet the demand. The new plant is expected to become operational in the middle of the year and begin mass production of the iPhone 6 later this year, AFP reported, citing Liberty Times.

Although the report did not say anything about who would produce the other half of the iPhone 6, Foxconn (TPE:2354), which has long been an Apple partner, is speculated to be the second manufacturer of the new handset.

The report came amid growing speculation that, in 2014, Apple could release a smartphone with a bigger screen compared to the four-inch screen of existing models.

Earlier this week, a new report from China’s Sina Weibo claimed that Apple is planning to introduce two iPhones later this year, featuring 4.7-inch and 5.7-inch screens. The report also said that both new models of the new iPhone are likely to sport fingerprint biometric scanners.