Apple has more than doubled iPhone production over current levels for an upgrade ramp-up the company is planning later this year, according to Ben Reitzes, an analyst with Barclay's. In a research note obtained by The Mac Observer, Mr. Reitzes said the Apple will be updating the iPhone in June, and the device would have upgraded camera features for improved still photography and possibly video-capabilities.

Optimism relating to the research note helped send and keep Apple in positive territory, even as much of the rest of the tech sector dipped into the red after it was revealed that merger talks between Sun Microsystems and IBM had ended. Apple ended the day up, at US$118.45, per share, a gain of $2.46 (+2.12%), on moderate volume of 23.5 million shares trading hands.

Mr. Reitzes cited sources in Taiwan for the production increase information. He also said that Apple will be releasing high-end iPhones with a camera in the front for video chatting purposes, in addition to having an improved camera on the back of the device as in current iPhone models.

These high-end iPhones would be matched with entry-level models without as many hardware features at a $100-$150 price point.

Mr. Reitzes research note dovetails with other reports concerning camera-related changes in the iPhone. On Friday, Taiwan-based newspaper DigiTimes reported that Apple had placed orders for 3.2 megapixel camera sensors for the iPhone, and 5 megapixel sensors for something not yet announced.

Earlier in March, Apple also placed job postings for a camera-related product manager for iPhone and iPod, and a camera-related engineer for iPhone.

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.