Yes, the iPhone Photography Awards, or IPPAWARDS, exists. This is, in fact, the seventh year of the competition (it began in 2007), making it the longest running competition of its kind, and there are some genuinely impressive images in the mix. For the skeptics, let's not forget that the first camera phone only came out 13 years ago, and its pictures looked something like this...
It's tough to ignore how far the bar has been raised with "camera phone" photography (or point-and-shoot as that's essentially what it is). That being said, we're still not to the point where we can expect iPhone images to be commonplace in an art gallery. But in another 10 years? It would be pretty foolish to rule it out.
View past winners at IPPAWARDS.com