iPhone 5 or earlier Red dot next to speaker on iPhone 5 problem

That's normal.

I believe the proximity device is based on infrared. You will probably see a faint red light source coming from it... like when you look up at a security camera in the dark, they have those red lights emitting the IR to illuminate whatever the camera is aimed at.

That is the infrared sensor. However you should not be able to see it. I only see mine when I look at the phone with a camera. If it bothers you I'd exchange it

Maybe it isn't visible to the naked eye. Maybe you're super-human?

Compile 'em all said:

I fail to see how this is normal. It shouldn't be visible to the naked eye at all.

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Some humans see more IR light then normal or more of a certain wavelength. There were people stating the same thing with iOS 4.0.2 on the iPhone 4.

Compile 'em all said:

I fail to see how this is normal. It shouldn't be visible to the naked eye at all.

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The tolerances on the wavelengths for these parts are such that with the right combination of part and person (vision is different for people too), sometimes the light is more visible.

Hold up a camera without an IR filter if you really want to see what's happening.

It's there on mine too btw, but I wouldn't call it 'very visible'. I have to check in a dark space /and/ get my screen to darken by holding something up to the sensor.

Compile 'em all said:

I have the iPhone 4 and never seen this before. Seems like a defect to me. I arranged a genius appointment on Tuesday. Wonder what he will say.

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You must have never ran iOS 4.0.2 on it and used it in a dark room. That's where most people saw it.

I've seen this both on my 4 and now my 5. I thought it was normal.. maybe I'm just more sensitive to IR light. IDK.

Ok so if it is there what problem is this causing?

Compile 'em all said:

Right. So is this a bug in iOS 6 on iPhone 5?

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Apple can change the intensity of the IR light with a firmware upgrade.

This totally normal.

I can also see it, specially at night when I'm using my phone... its kind of annoying but I think its normal. Don't know why the proximity sensor needs to be on if I'm not using the phone to call.

As Intell said, this is normal. The genius will also say it's normal. If you by chance do get a replacement phone, it's likely to have an aesthetic defect.

Since you're not believing any of us that this is normal. Bring it in to Apple have have them confirm this.

It's a new 'laser pen' spec that's been built in !

Compile 'em all said:

How can I put this into words? I have an iPhone 4 right now next to the iPhone 5. When I scroll on a web page a red dot shines next to the speaker. The iPhone 4 is pitchblack. Again, it is very difficult to notice in bright light but in the dark it is very very noticeable and quite annoying as it changes as you interact with the device. I don't have this issue at all on my iPhone 4.

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If you have Siri enabled, Raise to Speak will keep the proximity sensor on, thus the red dot will be on. The iPhone 4 doesn't have Siri, so it's only on during phone calls.

It may be that the manufacturer Apple chose for the proximity sensor gives off more red light than the one in the iPhone 4. Either way, it's completely normal. Your iPhone is fine.