[ryanpetrich]

Yes, it exploits a flaw in how the iPhone (and OS X presumably) handles PDF files to be able to run arbitrary code. I expect Apple will release an update that closes the hole.

[gizmomagico]

Well, does this mean that most iPhones out there are full of spyware then? And why not?

[DougBTX]

Presumably not yet. But the blueprints to own any iOS device via a remote web exploit just got put online, with thousands of links pointing to them.