Via nowherelese.fr, an alleged camera module for the iPhone 7 shows off four areas around the lens itself where OIS may be found. Those cutouts house the hardware (like springs) that let the actual camera module travel, providing stabilization.
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This makes a good bit of sense, too. It’s widely believed Apple will have a dual-camera arrangement in the iPhone 7 Plus, so upgrading the camera on the iPhone 7 is iterative.
Apple was once believed to have a third ‘Pro’ device in the works, but most rumors suggest that plan has been dropped in favor of concentrating efforts on the iPhone 7 and 7 Plus.
The iPhone 7 camera is shaping up to be the star of Apple’s release-date show, which could happen as early as September 6 or 7. We’re still dubious of any rumors, but OIS in the smaller iPhone 7 seems like the right move.