Ming Chi Kuo, one of the most accurate Apple analysts, laid out the case in a new research note for KGI Securities. According to reports, he believes that the larger iPhone 7 - the 5.5-inch "Plus" version - will come with a camera setup with two lenses, as has been predicted in the past.
From the note:
New iPhone shipments to be capped by similar form factor as iPhone 6s & 6s Plus; top hardware upgrade is dual-camera (5.5-inch model only), though many competing models with dual-camera will launch soon, joining others already on the market; first impressions could underwhelm.
Two camera lenses would make at least two exciting technologies possible: First, it would enable a kind of zoom that would be significantly better than the digital cropping options that Apple currently offers on the iPhone.
Two lenses also opens the possibility that the camera could accurately estimate how far things are away, which would be important for augmented reality software and apps. However, Apple keeps its product plans close to the vest and it's not clear how it would market or implement a dual-camera system.
Apple bought LinX Imaging last year, a small company that focused on improving image quality by using multiple camera modules.
The rest of the research note discusses whether Apple has reached "peak iPhone," or the possibility that Apple will sell fewer phones in 2016 than it did in 2015. Kuo believes iPhone sales could clock in at between 190 and 200 million phones this year, which would be significantly lower than the 232 million Apple shipped in 2015.
Last week, Kuo predicted that the iPhone that is coming out in 2017 would be a major revamp, with a bigger screen, a new design featuring glass on the back, and wireless charging.