Is this red light bright or dim, i'm guessing it's dim, infrared emitters come in 2 different wavelength versions, one is totally invisible to the human eye and the other appears as a very dim red glow (this can be seen on the cheaper security cameras that have infra red illumination) i would say that for some reason the infra red led in the iphone has failed and is emitting in a different light frequency spectrum. If your friends iPhone is out of warranty then find some one technically competent (and who you trust) and get the part replaced, they can be bought cheaply off eBay - just search for "iPhone light flex" it comes with the connecting ribbon and the pcb attached to the end contaning the emitter / detector and ambient light sensor.
Regards
Dave