I'm not sure if this is different in the iPhone 7, but the 6S is pretty terrible at color representation in photos, specifically when dealing with neon lights. The iPhone tends to overexpose the neon light to make up for the surrounding being darker, so to get a 'decent' shot, I have to down the exposure by about 2/3 on the 'brightness' in the normal Camera app. But in general, it has a hard time showing as good of color as you would be able to capture in a better camera. For example, I've taken some photos of museum paintings during a visit, and the colors tends to be a little darker and not truly representative (yellows appear like mustard rather than a brighter yellow, for example). I'd love to be able to take more color accurate photos, and it would be more worth it to get the iPhone 7 if that's the case.
That's what I figured. I hope that the sensor becomes better and better, so that one day I can take great neon light photos (as well as see the correct color of red).