Image stabilisation has been a feature of the higher specification cameras for a while now. The idea is that the camera detects the little wobbles as you’re pressing the shutter and compensate for them by moving lens elements or the sensor in the camera. This should help you get sharper pictures in more challenging conditions.
It looks like LG may be the first smartphone manufacturer to bring optical image stabilisation to phone cameras. Here’s the promotional video for the LG G2.