I think lots of people will be talking about the new 41 Megapixel camera-phone from Nokia ( the PureView 808). This article is the best one I have found that explains the technical details...

A few notes:
- There really are over 41 million pixels in the sensor
- The pixels are tiny: only 1.4 microns each
- There are 2 main reasons for having so many pixels:
+ reduce noise / grainy-ness in the image by oversampling and then combining pixels
+ Allow for better digital zoom - no need to interpolate when you actually have the pixels
- The output image will typically be 5 megapixels, but you can optionally save images as 8 MP, or 'Full Resolution.'

There is also a whitepaper on Nokia's website, with a few more details, but most of it is summarized in the article I mentioned:
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