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The camera is truly HD, however, and balanced light and colors well while still managing not to exhibit any blurring or bad tracking during fast repetitive motion. While we didn't test the microphone very extensively, we can confirm that it works.
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The Thunderbolt Display has a built-in "FaceTime" HD camera and microphone. All of our calibration is done using the X-Rite iDisplay sensor. This calibration is used for our color temperature and color curves testing, and is meant to showcase how accurately the monitor renders colors on the sRGB or Adobe RGB spectrum. The second calibration involves optimizing the monitor to a luminosity of 160 cd/m2, quite dark without being overly dark. This calibration is used for our contrast and viewing angle related analyses, and is meant to showcase how the monitor does for more general use, say in an office or living room, somewhere with more and/or brighter lighting. The first calibration involves optimizing the monitor to its own native luminosity, which is usually fairly high.
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To test a monitor's full potential, we use two different calibrated luminosities. While this is surprisingly low, it may not prove to be much of a problem unless you are attempting to view the Thunderbolt display with a group, and its 27-inch screen is wide enough for at least three people to watch at a head-on angle. We found that at 45 degrees, the contrast ratio for the Apple Thunderbolt display fell noticeably, from a contrast ratio of 850:1 to a contrast ratio of 18:1.