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The iPhone 12 blends hardware and software in a clever way by using Computational Photography to deliver pro–quality photos instantly.
In addition to normal image processing, it uses machine learning tech to analyze an image and break it down into its component parts, each of which is analyzed and adjusted separately. For example, if you were taking a photo of a person, your phone would identify and process the background, clothing, hair, eyes, and lips separately, adjusting exposure and saturation, and then blending them all together. The results are particularly good with traditionally tough tasks like shooting under skies. Bright skies can often overpower the subject in a photo, but with Smart HDR, the sky is analyzed and adjusted separately from everything else. Your iPhone effectively cuts out the sky, fixes it, and sticks it back again. The same processing is used in Night Mode, which takes advantage of new image algorithms to remove noise and produce better lowlight photos.