A company called InvenSense has created a nano-gyroscope system for camera phones. Measuring a mere 3.5 millimeters, the chips filter out motion by sensing vibration mechanically.
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Whereas newer cameras have little piezo switches to detect motion, this mini-gyroscopes are considerably smaller and more impressive. Expect them to appear later this year.
Nanotech Gyroscope Steadies Cameraphones [ExtremeTech]