The tip-off Apple Insider received about Apple apparently reducing orders for the current iPhone 4 camera and flash module, may indicate that Apple is planning to get both the camera and flash components from a third party rather than Philips.
In addition, Taiwanese website Apple.pro (opens in new tab) published a picture of the new iPhone 5 rear camera which clearly shows that there won't be any flash attached to the camera module AND the component that blocked the camera flash/interference.
Now could it be that Apple is planning to have a dual LED flash which, unlike existing smartphones, would be located a few centimeters apart allowing a better (and wider) light coverage; the HTC Evo 4G & HD2, the Nokia N96 & N900 and the Motorola Atrix all have a dual LED flash but all are physically only a few millimeters apart.
The move will not cost significantly more; iSuppli (opens in new tab) said that the combined cost of the camera and flash module on the iPhone 4 was just under $10, which means that adding a flash will, at most, add $2 to the bill of material while the increase in power consumption is likely to be minimal.
However, such a move would allow Apple to offer a unique selling point, at least for a few months (before others emulate that feature) and allow Apple to boost the iPhone 5's credentials as the best camera-phone on the market.