My understanding is that last year (2007), while everyone was salivating over the iphone and contemplating the its ramifications on the high-end phone market, Nokia sold the rest of the world budget phones and posted record profits. So I don't think they're really banking on the smartphone market -- at least as we've defined "smartphone" in the US. Especially when their high-end phones are selling for double or triple the price of the too-beat offering (iphone).
