Yes, the iPhone 7 is the first 4.7-inch iPhone model to ship with optical image stabilization (OIS) for both photos and videos.
Last year, Apple only offered OIS on the iPhone 6s Plus, leaving the iPhone 6s out of the party. Now both iPhone 7 models can capture sharper photos in low-light situations.The addition of OIS means that the iPhone 7 can utilize exposures 3x longer than the iPhone 6s while preventing camera blur. A larger f/1.8 aperture means 50 more light comes to the image sensor, which in combination with OIS means significantly improved low-light photography.
OIS is an advanced camera feature that helps reduce camera shake without the need of a tripod. The technology has been around for over 20 years, first being introduced on compact cameras and SLR lenses. It has recently became popular on other camera-equipped smart-devices, such as the iPhone.