Indeed.

Although in terms of functional components the N900 and iPhone 3GS are neck and neck, in fact the iPhone is arguably out in front as it has a digial compass which the N900 lacks. It's not important that the N900 has more pixels in it's screen or camera sensor, at a high level both devices are feature matched which is the point I'm making. A 3.5" screen is a 3.5" screen whether it has a high or low DPI; a camera will be a few mm's square whether it has 2MP, 5MP or 12MP etc. Quality isn't the point, it's the integration of these components that all have a similar size when considered as discrete components.

That said, the new iPhone device has a 5MP camera (same as N900), is believed to have a higher resolution screen (no confirmation on specific resolution, though if true I'd expect it to be similar to the N900 or possibly higher), and no idea on RAM memory - could be the same or more than the existing 3GS (which at 256MB is the same as the N900).

I have no idea how Apple have achieved this level of integration, unless the A4 CortexA8 CPU + PowerVR GPU SoC also includes all the GPS/WiFi/Bluetooth/accelerometer/digital compass gubbins that are typically discrete components/ICs on a Nokia OMAP3-based logic board.

What it says to me is that TI and other SoC suppliers need to up their game to compete at this level of integration - OMAP is not this highly integrated.

Alternatively, Nokia need to start designing their own SoCs, which is expensive, although considering how many devices Nokia manufacture every year it baffles me they haven't taken the same route that Apple have taken after only a few years in the mobile phone business.

Perhaps the diversity of the Nokia device portfolio has meant investment in a single highly integrated SoC could not be justified.