Optics company Carl Zeiss, based in Oberkochen, Germany, has signed an agreement to supply lenses for a camera module and electronics by Dialog Semiconductor, of Kirchheim/Teck-Nabern, in a collaboraton to develop camera phones as an alternative to digital cameras. "The battle for the next generation of camera phones will be decided by the combination of CMOS image sensors with innovative optics," said Roland Pudelko, CEO and president of Dialog Semiconductor. He said 10 megapixel camera phones are well within reach. The first jointly developed product is a camera module with a high-quality image sensor and integrated image processor with a lens smaller than a pea; it uses a three-element lens and extremely aspheric surfaces. The companies said volume delivery will begin soon.