Sharp introduced the 903SH 3G mobile phone with 3.2MP digital camera in July in Japan.

Vodafone is offering this interesting 3G mobile phone in the UK. Pocket-Lint picked one up and reviewed it.

Quote:
"The Sharp 903SH is the first 3.2 megapixel camera phone in the UK. Bold words we know, but it’s not just the CCD sensor that gets us excited about this phone, it’s the digital camera features that go with it. A 2x optical zoom, its 5 high-performance aspheric glass lenses. Frame Interline Transfer process, the same type used in professional-quality broadcast video cameras, to prevent the “smear” phenomenon and of course those picture sizes of up to QXGA sizes (1,536 x 2,048 pixel) and exposure control are just to name a few. "
Read the review. A 3.2MP camera phone resolution is really where it start to be usable as a digital camera replacement. Of course there are higher resolution camera phones already out there, but only in Asia.