Android 4.2 Photo Sphere Camera Feature Explained
The Photo Sphere Camera not only stitches horizontal photos - to get a panorama; it also stitches photos vertically. You don't have to go on clicking photos one after the other. Instead, you just have to click the camera button once and the move your camera throughout the scene that you want to capture as a panorama. The internal algorithm will quickly determine when it needs to click the shutter and will do it automatically for you.
The new Android 4.2 feature can even stitch photos taken from multiple angles. If anyone gets the firmware upgrade anytime soon - I'll request you to post the sample photographs. Think of this new feature as an extension of the 'panorama' feature.