There are already some phones that take some decent, high-megapixel pictures; Sony-Ericsson comes to mind as a company at the forefront of mobile phone cams. Kodak's new sensor is a 1.4 micron-per-pixel CMOS, which saves space over the 1.75 micron-per-pixel sensors that are common now but keeps the photo quality. For tiny cameras like these, however, I think megapixels are the least of their problems. Bad lenses, weak lighting and useless image processors are more to blame for the generally poor quality of mobile shots, but it's always nice to have those extra pixels.
Kodak says sensor boosts camera power in phones [Yahoo! News]