holy crap seriously?

Unfortunately without a properly sized chipset and proper lenses that is all a bunch of BS. What they are really doing is taking a an oversampled picture in order to get down to a 5MP sized picture with excellent detail. Nice but not worth the camera cost or that crap Symbian operating system they still have on that model. Their Windows 7 phones are far better and simply pushing that out because its been on the drawing board for 2 years was more an internal pride issue than anything else.

What a stupid waste... 42 Mpix for a nail size lens?
I think the whole thing is about to push people to buy more expensive high capacity storage media. Most pictures created with mobilphones are only to see on the mobile's screen or Facebook, etc. 3Mpix is more than enough. And most pictures shot by mobiles are just crappy, improperly exposed, blurry, low dynamic range that better to trash after several weeks... An up-to-date entry level DSLR can take 16 Mpix and the quality is way better than any crappy phone camera and it's more than enough for all hobby photographers.

Kirill: "Unfortunately without a properly sized chipset and proper lenses that is all a bunch of BS." Very interesting comment you're making there. How would you define a "properly sized chipset"?
I assume you are not referring to the 41 mp sensor, are you? For a phone sensor this is HUGE. It's a 1/1.2'' sensor. About the size of the sensor in Nikon V1. For a mobile phone this is revolutionary. So is the IQ.
I agree when you say "What they are really doing is taking a an oversampled picture in order to get down to a 5MP sized picture with excellent detail." Exactly. Why is that bad? You can still get 34mp 16:9 and 38mp 4:3 images without the oversampling.
"Nice but not worth the camera cost" What is not worth the camera cost?? The image quality?
This is probably the greatest innovation to come out of MWC 2012!

That's IT! Nokia has discovered the secret to beating the iPhone. MOAR CAMERA PIXELS! Success is guaranteed!

It'a a Camera with a smartphone, not a smartphone with a camera!

Gadgety: Innovation? WHat? An oversized image sensor and image cropping to trying to get details? From my point of view it's just a workaround not an invention.
The main element of any optical image reproduction is the lens. If it can not render high enough resolution with low distortion and consistent sharpness taking 42 Mpixels will not be a quantum leap. Well, maybe if you want to see some more details, it helps somewhat... however, the more detail isn't the only important parameter of an image.

Impressive for the size of the phone and especially with Carl Zeiss optics! Wow indeed.
dpreview.com has a few sample shots that tells it all.
It does beg the question as to why other 'normal' cameras don't or can't go higher in MP without inflating the price. We do know the amount of MP is not the precursor to a great camera but one with great optics does add to the wonder IMO.

Since the smartphone part is so lame (OS, single core etc) why not just use it in a feature phone instead of smartphone for people who want a phone with camera for great stills and 1080p video without the extra cost of a data plan.

@Ivan Imhof: I agree. But still this is impressive!