From Gizmodo:
"Camera features
They have also updated the camera. On paper, it's better than the one in iPhone 4S with a new dynamic low light mode too (I wonder how it compares to Nokia's IOS) and a sapphire crystal. Knowing how scratched the glass on my iPhone is—making the photos not as crisp as when it was new—that's good news. Shapphire crystal is the hardest thing you can get this side of a diamond.
Like the 4S, it has five-element optics and a 8 megapixel sensor (3264 x 2448 pixel), backside illumination, a hybrid infrared filter, and a nice f/2.4 aperture.
The new image processing chip has spatial noise reduction, with a system to analyze which parts of the image needs to be noise reduced and which should be left alone. As a result of all this, they claim low light photography is now much better than before.
The image capture is also faster: 40 percent, they say. The iPhone 4S camera is now quite fast, so it will be interesting to see how this feels. Certainly, there's not such a thing as fast enough when it comes to taking photos.
Panorama mode
They have also added a new capture mode called panorama. It doesn't require you to stitch photos one by one: just pan the phone and it will automatically capture a panorama for you. Even if you can't hold it steady, iPhone 5 is smart, using its gyroscope to correct for any variation in motion and make a perfect panorama. It also gets rid of any moving objects, they say.
The final result covers 240 degrees.
Video face detection
Like the previous iPhone, this one has 1080p FullHD capture. They claim they have improved the image stabilization in this version, added face detection (so it will be able to tag people automatically in videos) and, this is good, it will allow you to take full still photos while recording video.
Front FaceTime camera
They have also make the 720p front camera better with a new backside illuminated sensor. It also has face detection and—at last—the operating system will enable FaceTime over cellular."
See some unprocessed images here:
These Are Unprocessed Images from the New iPhone 5 Camera
Click on the images to see larger size.