Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
its probably an infra-red LED and receiver, nothing special
LED sends out light, reflected off surface, received by receiver, screen off

can i ask why?
 
It would appear you are correct sir.

When looking at the front of the iPhone through a digital camera when the iPhone is in the phone application I can see the IR transmitter firing.

Any idea on what type of IR transmitter/receiver being used? It seems to work remarkably well - even on materials which typically have trouble with IR such as anything black, or clear plastic.

I'm working on a project where we're going to be using proximity sensors. iPhone proximity sensors works extremely well compared to other sensors I have found.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.