Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 4_1 like Mac OS X; en-us) AppleWebKit/532.9 (KHTML, like Gecko) Version/4.0.5 Mobile/8B117 Safari/6531.22.7)

The yellow tint issue has been fixed on my iPhone 4 as well. My indoor pictures look much better.
 
Found a link here that suggest it does http://picasaweb.google.ru/bozhenov/OgqowI#

Can anyone confirm?
Since you still can't set the white balance the issue isn't resolved because you can still end up with yellowish pictures due to wrong white balance (especially when using TL lighting). I'd rather have a white balance option instead of the HDR option because setting the white balance does a lot more than HDR.
 
It's a lot better for me after the update. Before when I took pictures indoors at work, the colors would look almost neon. Now the colors look much more natural. The same goes for video recording, I've also noticed that it seems to adjust to different lighting much quicker on the fly now while recording.
 
iOS still has white balance issues and trouble rendering yellows: http://www.anandtech.com/show/3903/apples-ipod-touch-2010-review-not-a-poor-mans-iphone-4/3

4-yellow.jpg

iPod Touch (2010)

touch-yello.jpg

iPhone 4

epic-yellow.jpg

Samsung Galaxy S
 
Same here. I enjoy taking photos with my iPhone and I never noticed any yellow tint issues.
Try taking a picture in a room with the lights on at night. The white turns yellow.

This is good news that it is mostly fixed. That is the one thing that I had a prob with. I still won't update just yet. Worried about the battery life getting shorter.
 
4.1 seems to have mostly fixed it for me. And it was really bad before 4.1.

Yep, seems to be fixed for me as well. :) It had been getting to the point where I would avoid taking pictures of people if we were indoors in dim lighting, just because I 'd be too ashamed to show them the yellowed pics.
 
The phones white balance is set one way and is not user-settable to any other white balance. As such, white balance is way off during certain instances even with latest firmware and HDR. Firmware and HDR do not address white balance, so it remains. Beside the illuminating example posted above, white balance issue first came apparent to me yesterday evening. I was shopping for a rug and took two pics of two styles for my wife to choose color. After I shot the pics, I realized that the color was so way off that it wasn't worth sending her the pics.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.