Currently Being ModeratedNov 17, 2012 4:30 PM (in response to Jorge Escobedo)
The effect exists, but is probably overblown.
Apple acknowledges it here: http://support.apple.com/kb/TS4436
It is simply poor photographic technique to shoot into the sun, unless you are seeking to achieve an artistic effect by doing so. The light source should ideally be behind the photographer, or at least off to the side.
The iPhone is not the only phone susceptible to the problem:MacBooks iMacs iPods AirPorts, OS X Mountain Lion, 27 years Apple!