We've been as excited as everyone else about the iPhone 3G. But it's easy to forget that the iphone is just a tiny player in the mobile phone market. Even if it hits Steve Jobs' target of 10 million iphone sales by end of 2008, that will still be less than 1% of the mobile device market.

To put it into perspective, Nokia remains the world's biggest mobile handset maker with an estimated 40% of the market. Impressively Nokia has a very healthy lead over its competition. However if you look more closely, Nokia is slipping behind in the all-important Internet mobile device market.

Nokia just announced that in Q2, 2008 it had sold 122 million cell phones, up about two percentage points from its second quarter 2007 market share of 38%. These are Nokia's estimates, but they say that overall 303 million mobile devices were sold worldwide in Q2, 2008. Interestingly the geographical breakdown shows clearly that the Asia-Pacific market dwarfs the North American market: