HDR photos in iOS 4.1 could be a result of Apple acquisition
The addition of high dynamic range photos to the iPhone 4 via the iOS 4.1 software update may have come from the purchase of Imsense Ltd., a company that creates software to improve the quality of digital photos.
The company developed technology it dubbed "eye-fidelity," which allows for dynamic range correction in both standard and HDR photos. This is accomplished by recovering details lost in underexposed and overexposed pictures. The resulting effect, in some cases, results in superior pictures when taken in daylight or a bright setting.