I don’t like playing the iPhone rumor game, but when it’s a credible story coming from a credible, named source it’s too hard to pass up.

CNN and Mashable are reporting that Sony will be supplying the image sensors for the next generation iPhone, currently known as the iPhone 5 in the rumor mills. I think the device will still have a 4 designation, especially if the device is 4G network compatible. My money says iPhone 4G.

This is supported by an analyst’s report from February of this year saying that OmniVision might lose out on supplying cameras for the iPhone 5 because OmniVision’s 8-megapixel sensor won’t be ready for the iPhone 5’s rumored mid-summer launch.

I do not have any hands-on experience with new Sony image sensors, although when I remember from my first digital camera years ago that the Sony image sensors were far and away better than most other sensors in their class.

I really like the Omnivision sensors in the iPhone 4. They are a significant improvement over previous iPhone cameras and approach or exceed the quality from many point and shoot cameras. If true, these new Sony sensors should continue the trend of significant camera improvement in the iPhone series.

More and more, the iPhone becomes less and less lo-fi.

Here’s the link to the full story on CNN.com.