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This thing came up sometime back. While jailbroken iPhones actually let you play with the panorama feature which usually is hidden on the camera, there is a method which does not require you to jailbreak your iPhone or unlock it.

Image Courtesy: Wikipedia

How to Take Panorama Picture on iPhone 4:
Okay, to do this, you’ll need:

An iPhone (duh! Quite obviously, eh?)
iTunes (latest is best)
iBackupBot (you can get it from here)

 Now, the process:

Step 1). Download and install iBackupBot
Step 2). Connect your iPhone to your system and launch iTunes.
Step 3). Now, backup your iPhone via iTunes.
Step 4). Run iBackupBot. Find and open the iTunes backup file you just made, in iBackupBot. When the backup is loaded:
Step 5). Find this file: Library/Preferences/ and open it (on Mac, it opens. On Windows, you’ll need to use notepad)
Step 6). Now, you will have to add these lines of code somewhere in the middle of the file:


Step 7). Save the edited file.
Step 8). Now, right from the iBackupBot, restore the iPhone via the backup file.
Step 9). That’s it. Once you’ve followed the above steps, you will see the ‘Panorama’ option on the Camera’s Options. Use it!

While not many are aware that Apple has left the Panorama option hidden in the camera, many jailbreakers actually found it soon. However, in many cases, when the Panorama mode is used, the camera has been reported to get stuck.

With iPhone 4, and this non-jailbreak method, users have said that the camera on the Panorama mode works just fine and takes good pictures.
Via: TechLand.Time