The US Patent Office has published the patents that Apple filed when developing the new Panorama camera app in the iPhone.
There are five patents relating to the technology behind the Panorama feature, these include illustrations that show how various images are taken by the iPhone as it is moved from left to right, and combined within a 'target blend zone' between each image. There is also a detailed illustration that shows "an exemplary split graphics processing pipeline for panoramic photography," according to Patently Apple. This appears to be the visible tracking of the image shown at the top of the display while the user is performing the panorama.
Apple claims that its Panorama app allows users to shoot a 240 degree panorama "with one simple motion". The hardware and software then "work together to create one seamless, high-resolution panorama".