It seems everyone on this thread except LACAllen is very confused about image size (specified with MP), file size (specified with MB), and display resolution (specified with PPI). It is the "image size" that is most important. 4032X3024 is 12 MP; this is what your iPhone 7 is giving you - ALWAYS - unless you crop it down.
"File size" is a consideration for saving disk space on your computer. JPG compresses the file to take less disk space, but when you open a JPG file it is uncompressed so you can view it on your computer, or print on your printer the full 12 MP (4032X3024), but the JPG file itself "on disk" stays compressed and small in size.
THIS IS ALL YOU NEED TO KNOW as a beginner
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Advanced topic
After you shoot a photo if you are going to edit your photo a lot (like in Lightroom or Camera+ or other photo editing app), it is recommended that you save your original photo in a lossless format such as TIFF, BMP, or PNG (different from DNG). Perform all your edits and saves from this lossless formated file. You may choose to keep all your images always in lossless files if you do not mind using lot of disk space, and very slow upload/download to cloud drives and social sites. However for practical consideration you may opt to save your final image (after all edits are complete) to a compressed JPG file but never delete the uncompressed lossless source file. Then if you decide to edit the photo again, start from the uncompressed source file - never never never edit from a compressed JPG file. JPG compression is lossy, thus everytime you save the file you will loose quality though the image size will stay at 12 MP. If you are not going to edit a lot - snap and share - JPG is great.
If your camera only outputs JPG, no worries, open the file with any photo editing app and save as TIFF or BMP "before" you start to edit file. iPhone native camera only outputs JPG, but there are very good 3rd party apps like Lightroom, Camera+ , and others that allow you to save RAW, DNG, or TIFF files automatically as you snap the photos with your iPhone.
For complete understanding of Digital Photography I would recommend checking out a good book on this subject from your local library, or enroll in a photography class.
I hope I have been able to help you a tiny bit for now.