Flaregate : Apple has it's say on the matter
Before I head into a long old rant about this, doesn't sun refract like this when hitting any clear surface? For example a car window with the sun directly in front will cause a flare will it not? I use my iPhone 4s exclusively for taking all the pictures at EssentialMac and guess what, if the sun is shining in the wrong / right place you get lense flare. More often than not a few degrees of movement remove's the flare. Lense flare is cool anyways, look at the Transformers movies ;-)
Flaring is part and parcel of almost any phone based camera, you can quite easily get a purple flare effect by taking a really badly shot photo. Here's one from a Galaxy Nexus.
Here's some of the dumb ass comments you see in forums these days before people engage their brains.
The sun is shining wrong Let me guess... it's not a bug, it's a feature... the old, "you're holding it wrong" excuse I dont get this on my Samsung
There are a lot more but the idiocy of those forums made my blood boil and it really wasn't worth reading the rest of those posts.
Now to these people I say, notice those tourists you see everywhere with massive camera, huge lenses and guess what's almost always on the end of that. A lense hood. Guess what that's for. You guessed it to stop the flaring issue.
Oh and BTW. even Nasa get's the Purple Flare "issue"