Why do Iphone pics turn out different when you transfer them onto your computer?

I swear the contrast and colouring turns out so different, anyone else notice that?

It's because of the difference in the displays. Every monitor is different. Even two of the same model monitors can have slightly different picture using the same settings.

You can start with the color type. YOu are most likely looking at RGB but this gets Way over my head more about that here CMYB and RGB. SOme printers have the ability to covert from one to the other. Your monitor and its' settings are different. The same way cameras accept differentiating amounts of light and color so to do computers display differently depending on the settings like http://www.overnightprints.com/difference-between-cmyk-rgb

Flaws are also harder to see on small screens especially when it automatically customizes to fit the screen, when viewing on a nice monitor it shows the full image and those will show. Cellphone cameras are good but will never match a real camera that has the large lens.

No. They are exactly the same with original ones. There's no quality loss when I use iPhone transfer program.