Seems to be real but I instead of pushing just pixels the developers should develop cameras in mobile phones with better quality. 5 Megapixel are more than enough.

Its a fake and i’ll tell you why.

On top of the screen you see the 7MP button filled in.
Try this on your own K850 (i did), once you select the 3MP/5MP, the text will
by the icon will automatically change to the selected mode.

The icon should have shown 7MP as well.
This looks like a white M600i to me…
I just compared shapes to my W950i (=M600i shell) and its exactly alike.
Fake I say.

And lets hope the next generation will have a CCD sensor instead of CMOS,
that’ll really help with picture quality!

yeah ryt its fake only sony ericson C1i has a 7 megapixel

[...] New Sony Ericsson With 7 Mega pixel Camera? [...]

very fake. Answer is fake.

My reasons:
the background is black, if isn’t fake, why cover the lens?
the selected is 7MP, but the bottom writes 5MP. huh?

Possible answers:
They open the picture and hide the icons.