YouTube Upload From iPhone. When uploading to YouTube directly from the iPhone, the HD quality will be lost. This is because a reduced quality video is produced before uploading to save on Internet network bandwidth usage. The 700MB video mentioned above will be reduced to about 37MB, and the loss of about 660MB (about 95% of your original image information) is obviously noticeable. The reduction in file size is achieved by reducing the video size from 1280 x 720 to 480 x 270. In addition to the reduced number of pixels, video compression (like image compression) is used. Normally when reducing a photo or video, you can choose to reduce the dimensions but retain the image quality for a smaller picture that is very crisp and clear. Unfortunately, the video compression used in the upload process with YouTube is not very good. So, the resulting video image is small and fuzzy.
Source
Apple iPhone 4 HD Video Quality YouTube Upload Guidelines and Review | ResourcesForLife.com
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