No camera flash? Smaller sensor? Sigh.
Well, I won't be getting either device if they don't get the Nexus Edition treatment, anyway. I can't take skinned Android. :P
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With 8MP photos, the camera might perform better than the Xperia Z's 13MP camera, which defaults to 9MP anyway (so that the photos are in a 16:9 form, to suit the display's aspect ratio).
I rarely use the camera flash of my iPhone, neither for taking pictures in low-light, nor to act as a flashlight. But I do get your point: in the very few occasions that I do need to use the LED flash, it really does help, and I would not buy a phone without a camera flash. Though I'm not really sure if I can call the Xperia Z Ultra a 'phone'. As written in Gizmodo: "Sony's Xperia Z Ultra phone is… No. Hell no, it's not a phone."