I look ugly in my iPhone 4S camera, but fairly nice in the mirror?

So, as the title says, I appear way different on camera than I do in any mirror. My phone is almost a year old and the camera has not been damaged, yet sometimes I look hideous in the camera. Mind you, I'm self conscious, but there's a noticeable difference between the two. I wanted to know two things: Do people see me as the mirror image or the camera image? And why does the phone camera appear different than the mirror?

I believe people would see you as the mirror image. This happens with almost everyone for some reason. We look good in the mirror, but not in pictures. I really don't know why.

I would say neither because, even with a mirror, we perceive ourselves differently! (Technology, such as low optimal view cameras, are definitely unreliable though.)
So you may see yourself as fairly nice in the mirror, but everyone probably thinks you're one hot tamale.

Wide angle lenses, when used close up, always distort features… Try using the phone camera at double the distance or at least 6 foot away and the image will show less distortion.

A mirror image is a reverse of yourself. Your "real" look is that of a photograph.
But don't despair! There are reasons why you think you look worse in photos.
You are used to only seeing yourself in a mirror (reversed) and so it seems strange to see a photo of yourself (real image).
The other thing is your camera,
Phone cameras have wide angle lenses which distort things close to the camera. So if you are doing selfies and holding the camera too near to your face, it will make your nose and chin look longer. It will also make the eyes appear a bit bulgy.
Get someone to use a proper camera and take a photo of you from about 5 to 7 feet away. You will be surprised at how better it will make you look.