1. An apparatus of scanning and recognizing characters, comprising: an optical sensor for capturing images, the optical sensor continuously capturing scanned characters to obtain an image frame sequence containing the scanned characters, each image frame in the image frame sequence containing contents being partially overlaps with content of its previous one frame; and a control unit for processing images and recognizing characters, according to the overlapping contents, the control unit dividing the image frames in the image frame sequence into groups of image frames in which each group includes a reference frame, a predictive frame and maybe some skip frame, and combining the reference frame and the predictive frame to a panorama image group by group, performing an inclination correction based on the panorama image and performing a character recognition to get the character codes of the scanned characters.