PanoLab on iPhone

PanoLab is the first application to enable photographers to capture and assemble multi-frame panoramas and collages directly on the iPhone. PanoLab makes it simple to align photos that you pull from your photo library or capture on the fly. Once you've finished building your panorama, you may save it back to your photo library for viewing, emailing, and sharing online. 

Download link: http://itunes.apple.com/us/app/panolab/id290886481?mt=8#