The 72 DPI image quality drops or the 300?
Anyways, if it's the 72 DPI image that sucks when expanding it to 300 DPI in Photoshop, well, it's totally normal.
You're taking a low resolution picture and expanding it to a higher resolution. It' like if you take your 72 DPI image and zoom on it a lot, it will look bad because it IS bad.
Trust the users above, changing the DPI won't make the image suddenly look as good as another image that is originally 300 DPI.
But to answer your question, no, you can't change the DPI in the phone, you got to change the DPI of each picture you take manually on your PC.