Apple has publically suggested that iPhone 5 users should tilt their cameras away from light sources when trying to take pictures to avoid flares on images. Initially Apple was privately informing users that the purple halo on photographs was being produced due to how the users were framing the photographs. The anomaly that can affect both photo and video occurs due to proximity of a light source either on or off frame.
Users of the latest iPhone had started complaining of purple flares on their photographs and had sent a number of support emails to Apple in regards to the issue. However, some users were told by the computing giant that the behavior was considered normal, and that the user should just tilt the camera away from a light source when taking pictures.
The cause of the purple flare in this model of the iPhone, as with other iPhone releases, could be appearing when an off screen source of light at a particular angle, which causes it to reflect off surfaces inside the phone and onto the lens of the camera.
In order to minimize the effect of the flares, it is recommended to shield the phone with a hand or change the position of the camera, which would change the reflecting angle and thus reduce flare.