Nokia made a huge thing out of the PureView camera in the new Lumia Windows 8 Phones. They fudged it a bit, but its still better than the iPhone 4S camera.
Nokia unveiled the Lumia 920 and Lumia 820 Windows Phone 8 yesterday. Nokia spent most time on the PureView camera of the new Lumia smartphones. The whole thing is a bit confusing as the original Nokia PureView camera found in the PureView 808 is based on a 41MP camera. The PureView camera in the new Lumia Windows Phone 8 devices is just 8MP. On top of that Nokia's new PureView TV commercials have been faked. Still the Image stabilization and light sensitivity is still better than the iPhone 4S camera.
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Is the iPhone 5 able to compete? We do not know much about the iPhone 5 camera. Pretty much everything else has leaked, but not the camera. Which raises hopes that the iPhone 5 camera gets updated. See also this 9to5Mac report, that dives deep into this topic.
The new iPhone 5 will be announced on September 12. The iPhone 5 sales are then to begin September 21. Rumored features of the new iPhone 5 include a larger screen, A6 CPU, iOS 6, small dock connector, 4G LTE and NFC. The overall design would not change dramatically. The backside material is not glass anymore as Apple introduces a unibody design. The rumors also say that the iPhone 5 is very thin.